InfoSAWIT, JAKARTA – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange got cheaper in the second day, Monday (4/7/2022), because Indonesia as the main CPO producer in the world planned to escalate CPO exports in order to reduce CPO storage tanks (of many companies). Meanwhile other vegetable oil price got decreasing too.
CPO reference contract at FCPOc3 for September 2022 delivery at Bursa Malaysia Derivatives Exchange decreased 2,1% to be RM 4.611 (US$ 1.046,05) per ton in the early session. For information, CPO contract decreased 4% on Friday (1/7/202).
Prior on Sunday (3/7/2022) Coordinator Minister in Maritime and Investment, Luhut Binsar Pandjaitan asked for Ministry of Trade to escalate CPO and its derivative export multiplier ration to be seven times more from domestic marketing obligation (DMO). As in the official statement to InfoSAWIT, in June 2022 the CPO export quota reached 3,4 million tons.
Meanwhile the active soyoil contract at Dalian DBYv1 decreased 1,97%, and CPO contract at DCPv1 did too 2,24%.
As quoted from Reuters, CPO price decreased at the Asian trade on Monday, cut off the profits from the previous session because of the worry about recession globally. It burdened many countries when the supply was close particularly when Organization of Petroleum Exporting Countries (OPEC) got decreasing production, the chaos in Libya, and the sanction to Russia.
Crude oil at the exchange got decreasing and made palm oil less interesting as the material of biodiesel.
Reuters’ technical analyst, Wang Tao noted, CPO could be at about RM 4.588 per ton, and would increase to be RM 4.742 per ton. (T2)