PALMOILMAGAZINE, SINGAPORE – The contract price of Crude Palm Oil (CPO) at the Malaysia Derivatives Exchange surged on Tuesday, October 17, 2023, marking its highest level in the past three weeks.
This price uptick was attributed to increased exports, even in the face of declining crude oil prices, which curbed the upward price movement.
The reference contract price for CPO, with the code FCPOc3 and intended for delivery in January 2023 at the Malaysia Derivatives Exchange, climbed by RM 15 per metric ton, equivalent to about 0.4%, as quoted from Reuters.
Independent inspection company – AmSpec Agri Malaysia reported that palm oil products in Malaysia on 1 – 15 October could increase 5,6% than in September in the same period. While Intertek Testing Services reported, the exports would increase 7,3% .
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Malaysia keeps regulating CPO export tax in November at 8% and reduces reference price according to circulars in the website of Malaysian Palm Oil Board on Tuesday.
Still from Reuters, soyoil contract price at Dalian with the code DBYcv1 increased 0,1%, CPO contract with the code DCPcv1 decreased 0,3%. Soyoil price at Chicago Board of Trade BOcv1 decreased 0,1%.
Palm oil has something to do with other vegetable oil price because they compete to get parts in vegetable oil markets globally.
Crude oil got cheaper more than US$ 1 per barrel as the expection increased that United States of America and Venezuela would agree to minimize crude oil export sanction to Venezuela. While the traders mentioned, the conflict between Egypt and Hamas would not be a threat to oil supply in this very short. (T2)