PALMOILMAGAZINE, KUALA LUMPUR – Crude palm oil (CPO) prices in Malaysia dropped after a seven-session rally. The decline was driven by several factors, including lower crude oil prices and a stronger Malaysian ringgit, which offset positive factors like rising demand from India and concerns over market supply.
As reported by Palmoilmagazine.com, quoting Reuters, the benchmark CPO contract for December 2024 delivery on the Malaysia Derivatives Exchange fell by RM 25 per ton, or about 0.6%, to RM 4,127 per metric ton in early trading, reflecting market sentiment in the current economic climate.
Global crude oil prices have been declining for three consecutive days, with Brent crude for November delivery down by 0.45% to $71.28 per barrel as of 02:45 GMT. This was due to expectations of increased oil supplies from Libya and the OPEC+ group.
Also Read: BMI Revises 2024 CPO Price Projection: Forecasts Pressure from Global Factors and Weather Risks
Additionally, the Malaysian ringgit strengthened by 0.29% against the US dollar, adding pressure to CPO prices by making the commodity more expensive for foreign buyers. In contrast, soyoil on the Dalian Commodity Exchange rose by 0.1%, while CPO on Dalian increased by 1.06%, highlighting variations in the vegetable oil markets.
In the future, CPO price could potentially face the support level at RM 4.120 per metric ton with the further decreasing if the level got penetrated, as the technical analysis of Reuters, Wang Tao said.
CPO price was closely monitored because it would be the same with other vegetable oil price. This reflected the dynamic competiton in palm oil trade globally. (P2)
