PALMOILMAGAZINE, SINGAPORE – The price of Crude Palm Oil (CPO) at the Malaysia Derivatives Exchange saw a third consecutive decline on Wednesday, October 25, 2023. This decrease was attributed to the strengthening of the Malaysia ringgit and a drop in the prices of other vegetable oils.
According to information from Reuters, the CPO reference contract, identified by the code FCPOc3, with delivery scheduled for January 2024 at the Malaysia Derivatives Exchange, decreased by RM 41 per ton, which is approximately 1.1%, bringing it down to RM 3,626 per metric ton during the lunch break. This marked the lowest level seen in the past two weeks.
Meanwhile, in the United States of America, soybean harvests were expected to boost seed oil supplies and other related products. Data from the US Department of Agriculture indicated that approximately 76% of soybean plantations had been harvested by Sunday. These numbers either met or exceeded trade expectations and surpassed the five-year average for each plant cycle.
Also Read :
In addition, the price of soyoil at the Chicago Board of Trade, identified by the code BOcv1, experienced a 0.1% decrease, reaching its lowest level in the past four months.
Mitesh Saiya, the Manager of Trade at Kantilal Laxmichand and Company in Mumbai, pointed out that despite China’s announcement of fiscal stimulus, the challenge in the vegetable oil market lies in demand due to slim profit margins and an abundance of vegetable oil supply.
Soyoil contract price at Dalian Exchange with the code DBYcv1 decreased 0,9%, palm oil with the code DCPcv1 also decreased 1,1%.
Ringgit Malaysia = MYR, the official currency in palm oil trade got increased 0,2% toward US dollar. It made palm oil less interesting for those that traded in foreign currency. Palm oil has something to do with other vegetable oils because they compete to get part in vegetable oil trade globally. (T2)
