In the Last Six Weeks CPO Prices Continue to Drop

In the Last Six Weeks CPO Prices Continue to Drop

Palmoilmagazine, CPO

Palmoilmagazine, JAKARTA – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange got decreasing in the past three days, Friday (17/6/2022). It was the worst weekly session in six past weeks because of the increasing CPO exports from Indonesia and the prediction of increasing production. These really pressed the price.

CPO reference contract at FCPOc3 for September 2022 delivery at Bursa Malaysia Derivatives Exchange decreased about 1,33% per ton to be RM 5.400 (US$ 1.228,67) per ton in the early trade. In a week, CPO price decreased about 8,5%.

As Palmoilmagazine quoted from Reuters, the Government of Indonesia re-published Export Approval for about 820 thousand tons in the scheme of Domestic Market Obligation (DMO) and export acceleration, as Ministry of Trade reported, Wednesday (15/6/2022).

Prior on Tuesday (14/6/2022) according to Ministry of Trade, DMO reached about 450.221 tons. It means, Export Approval reached 2.251.105 tons. The export calculation is assumed by the domestic procurement which reached 1 and the export reached 5 times or 1 : 5 (comparison).

The main vegetable oil importer, India also published the import basic price of CPO, soybean, gold, silver, as the government reported on Wednesday night.

While soyoil contract at Dalian DBYcv1 decreased 0,64%, CPO contract at DCPv1 did too 1,12%. Soyoil contract at Chicago Board of Trade BOc2 was on the floor 0,39% higher.

Reuters’ technical analyst, Wang Tao predicted, CPO price could be more than RM 5.394 per ton, or could be about RM 5.571 – RM 5.702 per ton. (T2)

 

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