PALMOILMAGAZINE, MUMBAI – The contract price for Crude Palm Oil (CPO) at the Malaysia Derivatives Exchange experienced a decline during the trading session on Tuesday, the 10th of October 2023. This drop marked the lowest price level seen in the past three and a half months.
The reason behind this decrease was the apprehension that Malaysia might be facing an oversupply issue, which could potentially lead to a significantly larger production compared to the export figures from September 2023.
The reference contract price for CPO, identified by the code FCPOc3 and designated for December 2023 delivery at the Malaysia Derivatives Exchange, saw a decrease of RM 56 per ton, equivalent to a reduction of approximately 1.55%. This brought the price down to RM 3,549 (US$ 750.00) per metric ton during the morning trading session, as quoted from Reuters.
Also Read : CPO Prices on Malaysia Exchange Drop by RM 36 per Ton on Thursday
Prior ringgit currency got decreased to be 3.520 ringgit, or the lowest level since on 23 June 2023.
Survey by Reuters revealed that palm oil stock in Malaysia by the late of September 2023 might be increasing to the highest level since October 2022 even though the exports increased when production also did.
Soyoil contract price at Chicago Board of Trade BOc2 decreased 0,82% in the early session in Asia session.
Palm oil imports in India in September also decreased 26% from last month after the stock hit the highest level.
Crude oil got cheaper a little bit on Tuesday (10/10/2023) after it increased more than 4% in the previous session because the markets considered supply disturbance potential as same as conflict between Israel and Hamas Palestine still takes place.
Crude oil got much more expensive and made palm oil interesting to be biodiesel material. (T2)
