PALMOILMAGAZINE, SINGAPORE – Crude palm oil (CPO) price at Malaysia Derivatives Exchange got cheaper on Tuesday after it got increase for four days in a row. It happened for the profit taking – action when the markets were sensitive because of the cheaper soyoil and crude oil.
Sathia Varqa, senior analyst of Fastmarkets Palm Oil Analytics mentioned that the profit taking action took place even though the external markets showed the power. “The profit taking minimized the purchasing moment,” he said.
CPO trader, David Ng said that the cheaper soyoil and crude oil, also burdent the traders’ sentiment. This had something to do with CPO price. “We saw the support at RM 3.850 per ton and its resistance at RM 4.000 per ton,” David Ng said, as Palmoilmagazine.com quoted from Bernama.
Also Read: Ministry of Agriculture Would Boost Corn Production through Intercrops in Palm Oil Plantations
On the other hand, Hap Seng Consolidated Bhd (HSCB), a wealthy and diversified with six main businesses – company, including plantation, predicted that CPO prics pressure would go on, namely in the high season of harvest. The company mentioned that palm oil producers would face the challenges, such as, inflation and expensive costs of production.
In today’s closing trade, CPO for September 2024 delivery got cheaper RM 16 to be RM 4.005 per ton. October 2024 contract did too RM 8 to be RM 3.958 per ton, November 2024 contract did decrease RM 1 to be RM 3.923 per ton. December 2024 contract got decreased RM 6 to be RM 3.900 per ton, January 2025 contract would be the same RM 10 to be RM 3.889 per ton, and February 2025 contract also decreased RM 14 to be RM 3.882 per ton.
Corn Prices Rise
On Tuesday, August 27, 2024, corn prices at the Chicago Board of Trade (CBOT) increased slightly but remained at their lowest level in four years. This rise occurred amid record-high corn production in the United States and farmers selling off old stock.
Corn futures at CBOT climbed 0.1% to $3.86¾ per bushel as of 02:59 GMT, recovering from Monday’s four-year low of $3.85 per bushel.
According to Reuters, wheat prices fell 0.2% to $5.23¾ per bushel, and soybean prices also dropped 0.2% to $9.79¼ per bushel. The decline in wheat prices was largely due to ample supplies from the Black Sea region, while soybean prices were pressured by expectations of a large harvest in the U.S.
Even though corn is still cheap, a trader in Singapore said,” We did not see the next decreasing price of corn from recent level because corn production in the USA hit the record and the markets had calculated it.”
Also Read: Ministry of Agriculture Optimize Corn Production through the Kesatria Program
Still from Reuters, the reports from harvest tour that ProFarmer advisory service conducted, reported that the harvest output hit the record in some soybean states, such as, Illinois and Iowa. The two reinforced the over – supply globally. ProFarmer reported that soybean harvest in the country would be more than what the government predicted.
But the hot weather and lack of rain in some regions of Midwest, USA could damage soybean during the development process. This also raised concern about harvest realization that was projected before.
In Europe, MARS, plantation monitoring service, Monday, minimized most of seed output prediction in average this year. It significantly got decreased for corn because of hot weather that had something to do with the plant in southeast Europe. (P2)
