CPO Got Better for Waiting the Details of DMO in Indonesia

CPO Got Better for Waiting the Details of DMO in Indonesia

InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange, Tuesday (7/6/2022) increased for the supply could be decreasing by the late of May 2022. The traders are waiting for the details about regulation in domestic market obligation (DMO) by the Government of Indonesia.

CPO contract at FCPOc3 for August 2022 delivery at Bursa Malaysia Derivatives Exchange increased RM 45 per ton or about 0,7% to be RM 6.498 (US$ 1.478.50) per ton in the early trade.

As InfoSAWIT quoted from Reuters, the Government of Indonesia published he detail about DMO according to Decision of Minister of Trade Number 997 / 2022 and the Technical Arrangement of Bulk Palm Cooking Oil for the Peopole which is regulated in Decision of General Director of Domestic Trade Number 45 / 2022.

Prior in the previous virtual press conference, Coordinator Minister in Maritime and Investment, Luhut Binsar Pandjaitan decided Export Approval for 23 companies within 302 thousand tons.

Meanwhile in Malaysia, by the late of May 2022, the stock could be decreasing 6% from April 2022 to be 1,54 million tons because the slow output and increasing export, as Reuters surveyed on Friday.

CPO exports to India in May 2022 was the highest ones in the past seven months and increased 15% to April because the country limited the exports from Indonesia by getting much from Malaysia, Thailand, and Papua New Guinea, as five industrial officials mentioned.

Soyoil contract at Dalian DBYcv1 increased 0,5%, while CPO contract at DCPcv1 increased 0,6%. Soyoil price at Chicago Board of Trade BOcv1 increased 0,2%.

Reuters’ technical analyst, Wang Tao predicted, CPO could be at RM 6.386 per ton, within the potential decreasing at about RM 6.204 – RM 6.317 per ton. (T2)