PALMOILMAGAZINE, JAKARTA – The Malaysian ringgit has depreciated against the US dollar, making palm oil more appealing to foreign currency holders. This shift in currency values has had a notable impact on the price of crude palm oil (CPO) at the Malaysia Derivatives Exchange, particularly in the morning trade on September 25, 2023.
Concurrently, other vegetable oils at the Dalian Exchange have seen price increases, further exacerbated by the declining ringgit.
According to Reuters, the reference contract price for CPO, coded as FCPOc3 and set for December 2023 delivery at the Malaysia Derivatives Exchange, surged by RM 27 per ton, equivalent to 0.73%, reaching RM 3,708 (US$ 791.80) per metric ton during early trading. Over the past week, the price of CPO contracts has experienced a decrease of 2.75%.
Soyoil contract price at Dalian with the code DBYcv1 escalated 1,14%, CPO contract price with the code DCPcv1 did too 1,27%. Soyooil price at Chicago Board of Trade BOcv1 got cheaper 0,4%.
Palm oil has something to do with other vegetable oil price because they compete to get parts in vegetable oil trade globally.
Cargo surveyor – Intertek Testing Services noted that palm oil exports from Malaysia on 1 – 20 September escalated 2,4% compared to August 2023 in the same period. Independent inspection company – AmSpec Agri Malaysia mentioned palm oil exports in the same period increased 1,8%.
Refinitv Commodities Research predicted the bad dry season would happen in October 2023 in Indonesia as the biggest palm oil producer in the world. (T2)