Normal Supply Prediction, CPO Prices Drop 4%

Normal Supply Prediction, CPO Prices Drop 4%

Palmoilmagazine, Hendra, Sawitfest 2021

Palmoilmagazine, JAKARTA – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange decreased in the fourth session in a row, Monday (20/6/2022) to the lowest level for the past five months because Indonesia encouraged to conduct palm oil exports and the better supply. At the same time, crude oil price also decreased.

CPO reference contract at FCPOc3 for September 2022 delivery at Bursa Malaysia Derivatives Exchange decreased to be RM 5.221 (US$ 1.186,59) per ton or decreased about 4,27% in the early trade.

CPO price at the same spot decreased 8% on Friday (18/6/2022) and be the worst weekly session in the past six weeks.

As Palmoilmagazine quoted from Reuters, the Government of Indonesia published Export Approval to send more than 820.000 tons of vegetable oil managed by domestic market obligation (DMO) scheme and export acceleration program last week, as Ministry of Trade Indonesian Republic informed.

The main vegetable oil importer, India decreased the basic price of CPO, soyoil, gold, and silver import, as the government claimed last week.

The active soyoil contract at Dalian DBYcv1 decreased 1,6%, CPO contract at DCPv1 decreased 3,2%. Chicago Board of Trade was close on Monday for Juneteenth holiday.

CPO price has something to do with other vegetable oil price because they compete to get part in vegetable oil markets globally.

Crude oil price decreased though there has been close supply after its price decreased about 8%. It happened for the worry about the slow economic progress and fuel demands globally. (T2)

 

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