PALMOILMAGAZINE, SINGAPORE – The decline in Crude Palm Oil (CPO) prices at the Malaysia Derivatives Exchange on Wednesday, September 20, 2023, can be attributed to several factors, including dwindling exports from Malaysia and the weakening of the ringgit currency.
According to information from Reuters, the CPO reference contract, coded as FCPOc3, for December 2023 delivery at the Malaysia Derivatives Exchange, experienced a decrease of RM 11 per ton or 0.3%, settling at RM 3,738 (equivalent to US$ 796.68) per metric ton during the early trading session.
It’s worth noting that Malaysia, the world’s second-largest palm oil producer, has maintained an 8% CPO export tax for October, which has contributed to the reduction in CPO reference prices, as disclosed by the Malaysian Palm Oil Board in their announcement on Tuesday.
Also Read : CPO Price at Malaysia Exchange Drops RM43 Per Ton on Tuesday
Cargo surveyor – Intertek Testing Services mentioned, palm oil exports from Malaysia on 1 – 15 September decreased 11.8% from the previous month to 580.893 metric tons, on Tuesday. While the other cargo surveyor, Amspec Agri noted, on 1 – 15 September palm oil exports from Malaysia decreased 9,3% from the previous month.
Still quoted from Reuters, the soyoil contract price at Dalian with the code DBYcv1 decreased 0,6%, while the CPO contract price with the code DCPcv1 had no change. Soyoil price at Chicago Board of Trade BOcv1 increased 0,2%.
Palm oil has something to do with other vegetable oil prices because they compete to get part in the vegetable oil trade globally.
Malaysia ringgit, MYR as the official currency in palm oil trade had no change towards US dollar after in six days it got cheaper. This made palm oil affordable for those who traded in foreign currency. (T2)
