Palmoilmagazine, KUALA LUMPUR – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange, Tuesday (24/5/2022) increased for three days in a row. It happened for the smaller CPO production indication, the high exports, and the traders still monitored domestic market obligation (DMO) and domestic price obligation (DPO) in Indonesia.
CPO reference contract at FCPOc3 for August 2022 delivery at Bursa Malaysia Derivatives Exchange increased RM 82 per ton or about 1,31% to be RM 6.343 (US$ 1.444.22) per ton in the early trade.
As Palmoilmagazine quoted from Reuters, the Government of Indonesia through Coordinator Ministry in Economy planned to minimize CPO percentage for biodiesel production which now runs in B30. This is about to confirm that palm cooking oil supply is available in this country.
CPO producers in Indonesia still wait for DMO numbers. This postponed the exports.
In Malaysia, CPO stock in May 2022 could be decreasing for the intensive export on 1 - 20 May 2022 which increased about 32%. The CPO production in the country could be decreasing about 15%, as industrial groups and cargo surveyor noted.
The active soyoil contract at Dalian, DBYcv1 increased 0,4%, while CPO contract at DCPcv1 increased 1,7%. Soyoil price at Chicago Board of Trade BOcv1 decreased 0,4%.
Reuters’ technical analysis, Wang Tao predicted, CPO would be stagnant at about RM 6.099 – RM 6.354 per ton. (T2)