CPO in Fluctuation; The Markets Responded to New CPO Levy

CPO in Fluctuation; The Markets Responded to New CPO Levy

InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange got increasing, Friday (10/6/2022) after the Government of Indonesia published the cheaper CPO Export Tax and Out Fee. In the past one week, the trade got cheaper than it in the past three weeks to anticipate CPO supply after Indonesia re-opened CPO exports.

Reference CPO contract at FCPOc3 for August 2022 delivery at Bursa Malaysia Derivatives Exchange increased RM 31 ringgit per ton or about 0,5% to be RM 6.241 (US$ 1.419,38) per ton in the early trade.

In the past one week, CPO decreased about 3%. It happened for the limited activity to stop the spread of Covid-19 namely in some regions in Shanghai, China.

As InfoSAWIT quoted from Reuters, Ministry of Finance Indonesian Republic increased CPO Out Fee within the maximal numbers at US$ 288 per ton, if CPO reference price by the government is more than US$ 1.500 per ton.

The commerce center in Shanghai, China faced that the people of China suffered Covid-19 issue massively in the late week – only ten days after lockdown was revoked. This is a concern and could impact the business world.

The active soyoil contract at Dalian DBYcv1 decreased 1%, while CPO contract at DCPcv1 decreased 2,4%. Soyoil price at Chicago Board of Trade BOcv1 decreased 0,6%.

Reuters’ technical analyst, Wang Tao predicted CPO could be increasing to be RM 6.423 per ton and it could be stable at RM 6.138 per ton but could be increasing again to be more than RM 6.233 per ton. (T2)