PALMOILMAGAZINE, JAKARTA – The contract price for crude palm oil (CPO) at the Malaysia Derivatives Exchange declined for the fifth consecutive session on Thursday (7/12/2023), marking the lengthiest period of decline since mid-September 2023.
This downward trend was not exclusive to CPO; other vegetable oils and crude oil also experienced reductions, accompanied by a depreciation of the Malaysia ringgit, which helped mitigate overall losses.
As reported by Reuters, the CPO reference contract with the code FCPOc3, designated for February 2024 delivery at the Malaysia Derivatives Exchange, decreased by RM 20 per ton, equivalent to about 0.54%, settling at RM 3,699 (US$ 791.74) per metric ton. This marked the lowest level in the past six weeks, compared to the previous value of RM 3,641 per metric ton.
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A trader in Kuala Lumpur commented that the markets had rebounded from preceding losses, attributing the correction to an oversold market condition.
Still from Reuters, soyoil contract price at Dalian with the code DBYcv1 decreased 0,9%, CPO contract price with the code DCPcv1 also decreased 1,06 %. Soyoil price at Chicago Board of Trade BOc2 increased 1,42 %.
Palm oil has something to do with other vegetable oil because they compete to get part in vegetable oil trade globally.
Malaysia ringgit, as the official currency in palm oil trade got decreased 0,13% towards US dollar. This made palm oil more interesting for those having foreign currency.
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