InfoSAWIT, JAKARTA – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange got decreasing on Tuesday (5/7/2022) for the third session in a row when some worried that Indonesia planned to multiply its CPO export quota to make smallholders’ fresh fruit bunch (FFB) more expensive.
CPO reference contract at FCPOc3 for September 2022 delivery at Bursa Malaysia Derivatives Exchange decreased 1,13% to be RM 4.301 (US$ 973,96) per ton in the early session. It means, CPO decreased about 7,6% since last Monday.
According to Decision of General Directorate of Foreign Trade Ministry of Trade Number 13 / 2022 about Volume Multiplier Ration to Export Approval on Crude Palm Oil, Refined, Bleached and Deodorized Palm Oil, Refined, Bleached and Deodorized Palm Olein dan Used Cooking Oil, the allocation of Export Approval would be delivered to the exporters 7 (seven) times more than the distribution evidences which is the same with domestic market obligation (DMO).
“The allocation is from Sistem Informasi Minyak Goreng Curah (SIMIRAH) 2.0 report and delivered to System Indonesia National Single Window (SINSW) in Export Approval proposal validation,” the regulation explained as what InfoSAWIT got. The policy managed, there would be increasing CPO supply in the globe and the traders responded by having the cheap price. As quoted from Reuters, active soyoil contract at Dalian DBYv1 decreased 2,76%, and CPO contract at DCPv1 did too 2,56%.
Crude oil at Brent extended the increasing price on Tuesday because many workers in Norway stopped working. This might disturb oil and gas production and raised worry that the supply would be close. The increasing crude oil price made palm oil more interesting to get as biodiesel material.
Reuters’ technical analyst, Wang Tao noted, CPO could be RM 4.267 per ton. Prior it was at about RM 3.900 – RM 4.090 per ton. (T2)