PALMOILMAGAZINE, JAKARTA – The cost of crude palm oil (CPO) at the Malaysia Derivatives Exchange registered a consecutive decrease for the third session on Tuesday, December 5, 2023. Meanwhile, other vegetable oils in Dalian and the Chicago Board of Trade maintained their affordability.
According to information from Reuters, the reference contract price for CPO, denoted as FCPOc3 and set for February 2024 delivery at the Malaysia Derivatives Exchange, declined by RM 25 per ton or approximately 0.65%, settling at RM 3,799 (US$ 815.06) during midday trading.
A trader based in Kuala Lumpur noted that the opening gap was covered by new buyers presenting lower bids, resulting in an eventual increase to the highest level. However, he pointed out that the price failed to sustain itself as other vegetable oils experienced further declines in cost.
Also Read : CPO Prices on Malaysian Exchange Fall Amid Global Vegetable Oil Decline
Still from Reuters, soyoil contract price at Dalian Exchange with the code DBYcv1 decreased 0,30%, CPO contract price with the code DCPcv1 also decreased 0,75%. Soyoil price at Chicago Board of Trade BOc2 did too 0,23%.
CPO has something to do with other vegetable oil price because they compete to get part in vegetable oil trade globally.
Survey by Reuters revealed that palm oil supply in Malaysia by the late of November 2023 could be decreasing for the first time since April 2023. It happened because of decreasing seasonal production that would start while the exports keep increasing.
Palm oil in European vegetable oil markets also decreased on Monday because palm oil price at Malaysia Derivatives Exchange got cheaper. It could be between US$ 2,50 per metric ton (expensive rate) and US$ 12,50 per ton (cheaper rate).
Palm oil imports in India in November 2023 increased more than one fifth comared to the previous month because the distillers preferred tropical oil to others and bigger discount than soyoil and sunflower oil. (T2)
