Credit: Special
Palmoilmagazine.com, KUALA LUMPUR – On Tuesday (23/5/2023), the price of Crude Palm Oil (CPO) at the Bursa Malaysia Derivatives Exchange experienced an improvement. It managed to recover from the lower price observed in the previous session. A contributing factor to this improvement was the depreciation of the Ringgit against the US dollar. Despite expectations of increasing palm oil production, traders took the depreciating currency into consideration.
According to Reuters, the reference price for CPO with the code FCPOc3, scheduled for delivery in August 2023 at the Bursa Malaysia Derivatives Exchange, rose by RM 25, equivalent to approximately 0.73%, reaching RM 3,453 (US$ 778.58) per ton during the early session.
As in the official statement from research result by Refinitif, palm oil stocks in China and India start decreasing because the increasing import quota. Refinitif predicted that palm oil production could be increasing for the dryer season this year and would be better to harvest process.
Until now ringgit Malaysia got cheaper 0,26% towards US dollar. As the impact, many commodities got cheaper for the traders that have foreign currency.
Soyoil contract at Dalian with the code DBYcv1 got cheaper 0,5% while CPO contract with the code DCPcv1 increased 0,03%. Soyoil price at Chicago Board of Trade with the code BOcv1 got cheaper 0,2%.
Palm oil has something to do with other vegetable oils because they compete to get part in vegetable oil markets globally. (T2)
