CPO Price Decreased Again 2,25%, It was Increasing

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CPO Price Decreased Again 2,25%, It was Increasing

InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange decreased more than 2%, Wednesday (22/6/2022), and hit the lowest level in the previous session because crude oil and other vegetable oils did decrease.

CPO reference contract at FCPOc3 for September 2022 delivery at Bursa Malaysia Derivatives Exchange decreased RM 112 or about 2,25% to be RM 4.868 (US$ 1.106,36) per ton in the early session, and got lower in five of six sessions.

As it was informed, Indonesia published Export Approval which nearly reached 1 million tons in domestic market obligation (DMO) scheme and export acceleration program, according to what Ministry of Trade Indonesian Republic mentioned.

The Government of Malaysia would vanish the subsidy for certain palm cooking oil on 1 July 2022 which was announced on last Tuesday. This would be the way to guarantee the local supply and to stabilize the price.

The active soyoil contract at Dalian DBYcv1 decreased 2,3%, while CPO contract at DCPcv1 decreased 1,3%. Soyoil price at Chicago Board of Trade BOcv1 decreased 1,2%.

Crude oil got cheaper US$ 4 as the response to what President USA, Joe Biden would do to decrease fuel cost which gets more expensive, including the US big companies’ pressure to help enlighten the pressure which the drivers experienced when the peak season of summer in the country.

Reuters’ technical analyst, Wang Tao noted, CPO could be at RM 4.896 per ton and get cheaper at RM 4.588 per ton. (T2)