PALMOILMAGAZINE, KUALA LUMPUR – On Friday (29/12/2023), the contract price of Crude Palm Oil (CPO) at the Malaysia Derivatives Exchange witnessed a decline, attributed to the decreased prices of other vegetable oils, the strengthening Malaysia ringgit, and the consecutive annual reduction in the reference contract price.
According to Reuters, the CPO reference contract price with the code FCPOc3 for March delivery at the Malaysia Derivatives Exchange dropped by RM 42 per ton, approximately 1.12%, reaching RM 3,697 (US$ 806.32) per ton in the early session. This marks an 11% decrease compared to the previous year.
The El Nino phenomenon, which caused drought in numerous Asian regions, played a mitigating role in limiting losses this year. However, forecasts indicate its recurrence until the first semester of 2024, posing a potential threat to global palm oil production.
Also Read: CPO Price on Malaysian Exchange Drops to Lowest Level in Two Weeks
Still from Reuters, soyoil contract price at Dalian with the code DBYcv1 decreased 1,72%, CPO contract price with the code DCPcv1 decreased 1,88%. And soyoil price at Chicago Board of Trade BOcv1 decreased 0,17%.
CPO has something to do with other vegetable oil price because they compete to get part in vegetable oil trade globally.
Malaysian ringgit increased 0,43% towards dollar and made this commodity more expensive for the buyers that held foreign currency. (T2)
