Palmoilmagazine, KUALA LUMPUR – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange decreased more than 3% in the early trade, Thursday (4/8/2022), it happened for the over or increasing supply and export from Indonesia.
CPO reference contract at FCPOc3 for October 2022 delivery at Bursa Malaysia Derivatives Exchange got cheaper RM 76 per ton or about 1,97% to be RM 3.788 (US$ 850,47) per ton in the early trade or decreased one third in four sessions.
As quoted from Reuters, CPO stock in Malaysia by the late of July could be increasing 9,8% from the previous month to be 1,82 million tons because of the higher production, as Head of Regional Plantation Research at CGS-CIMB Research, Ivy Ng mentioned in a report.
The wheat ship started leaving from Ukraine in the war, passing through Bosphorus strait on Wednesday (3/8/2022) heading to Lebanon. The first delivery is hoped to enlighten the food crisis globally.
In the recent days, Refinitv Commodities Research reported, the re-export activity from Ukraine escalated the better supply from Black Sea which delivered 60% of sunflower oil and 76% from the exports.
The exporters’ lower obligation and the higher export volume multiplier in Indonesia make palm oil more competitive than it from Malaysia.
Soyoil contract at Dalian DBYcv1 decreased 3,3%, CPO contract at DCPcv1 did too 4,1%. Soyoil reference at Chicago Board of Trade BOcv1 decreased 1,2%.
Reuters’ technical analyst, Wang Tao noted, CPO could be at RM 3.717 per ton, within the potential to get better at RM 3.489 – RM 3.598 per ton. (T2)