PALMOILMAGAZINE, KUALA LUMPUR The contract price of crude palm oil (CPO) at the Malaysia Derivatives Exchange experienced a decline on Thursday (December 28, 2023) following a two-session increase. This decrease occurred despite the reduction in production of other vegetable oils, putting an end to the previous losses.
According to Reuters, the reference contract for CPO with the code FCPOc3, scheduled for delivery in March 2024 at the Malaysia Derivatives Exchange, decreased by RM 10 per ton, approximately 0.27%, reaching RM 3,760 (US$ 814.91) per ton by midday.
Anilkumar Bagani, the Head of Vegetable Oil Research at Sunvin Group in Mumbai, predicted that the trading price of CPO would continue to decrease. This forecast is attributed to the concurrent decline in vegetable oil contracts on the China exchange and the weakened performance of CPO production in Malaysia in December 2023.
Also Read: CPO Price at Malaysian Exchange Rose 0.5% Amid Surge in Vegetable
“Though the lower production limited the cheaper CPO,” Bagani said, as quoted from Reuters.
According to the Malaysian Palm Oil Association, CPO production in the country decreased by 8.59% on December 1–20, while Kay Hian of UOB predicted that CPO production decreased by 7% to 11%.
Soyoil contract price at Dalian with the code DBYcv1 decreased by 0.39%, and CPO contract price with the code DCPcv1 also decreased by 0.33%. Soyoil price at Chicago Board of Trade BOcv1 did too (0.27%).
CPO has something to do with other vegetable oil prices because they compete to get a part in the vegetable oil trade globally. (T2)
