PALMOILMAGAZINE, KUALA LUMPUR – The Crude Palm Oil (CPO) contract price at the Malaysia Derivatives Exchange registered a decrease on Monday, October 16, 2023. However, it marked the highest level it had reached in the past two weeks when compared to the preceding session.
This reduction in price was attributed to the depreciation of the ringgit currency and an increase in exports, both of which contributed to supporting the CPO price.
The CPO reference contract with the code FCPOc3, scheduled for delivery in January 2024 at the Malaysia Derivatives Exchange, declined by RM 14 per ton or approximately 0.37%, settling at RM 3,745 (equivalent to US$ 790.08) per metric ton during the early trading session, as quoted from Reuters .
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Cargo surveyor – Intertek Testing Services on Sunday noted that palm oil exports from Malaysia on 1 – 15 October increased 7,3% to be 623.245 metric tons from 580.893 metric tons which were sent on 1 – 15 September.
The Government of Indonesia got its CPO reference price cheaper on 16 – 31 October to be US$ 740,67 per tons from US$ 827,37 per ton, according to the regulation of ministry of trade on Friday.
Palm oil imports in India in September decreased 26% from the previous month to be 834.797 tons, the lowest level in the past three months. This happened because the higher supply encouraged refinery reduced purchase, as trade agency mentioned on Friday.
Malaysia ringgit = MYR, the official currency in palm oil trade also, decreased 0,32% towards dollar. This made palm oil more interesting for buyers that traded in other currency.
Still from Reuters, soyoil contract price at Dalian with the code DBYcv1, increased 1,3%, CPO contract with the code DCPcv1 increased 1,8%. Soyoil at Chicago Board of Trade BOcv1 increased 0,77%.
Palm oil has something to do with other vegetable oils because they compete to get part in vegetable oil trade globally. (T2)