PALMOILMAGAZINE, NEW DELHI – The Crude Palm Oil (CPO) contract at the Malaysia Derivatives Exchange experienced a decline on Monday (11/12/2023), attributed to a reduction in exports that may signify decreased demand in the early stages of the cold season. As reported by Reuters, the CPO contract price, identified as FCPOc3 for February 2024 delivery, depreciated by RM 13 per ton or approximately 0.35%, reaching RM 3,727 (US$ 796.54) per ton during midday trading.
A trader in Mumbai commented on the situation, linking the diminishing exports from Malaysia to weakened demand. “There is no doubt because the demands tend to decrease a little bit in the cold season,” he remarked.
According to cargo surveyor – Intertek Testing Services, palm oil exports from Malaysia on 1 – 10 December decreased 7,4% to be 368.990 metric tons from 398,375 ton in the same period last month.
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Reuters noted that palm oil demands usually decrease in the early days of cold season because the lower temperature that makes vegetable oil frozen and that is why the consumers are difficult to use it.
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