InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange increased more than 3% on Friday (15/7/2022) morning. This was the chance to cover up the loss after it was getting cheaper. It happened for the worry of decreasing exports from Malaysia because the Government of Indonesia boosts the export volume.
CPO reference contract at FCPOc3 for September 2022 delivery at Bursa Malaysia Derivatives Exchange increased RM 106 per ton or about 2,97%, to be RM 3.674 per ton in the early session. As quoted from Reuters, for few past weeks, CPO price decreased up to 11,8% in a row.
The Government of Indonesia considers to cut off levy for it is the burden for the cheap fresh fruit bunch (FFB) price produced by the smallholders. The government could be about to deliver incentive to accelerate the exports so that the companies’ mills would be normal again.
Soyoil contract at Dalian DBYcv1 increased 2,7%, CPO contract at DCPcv1 decreased 0,7%. Soyoil price at Chicago Board of Trade BOcv1 increased 1,6%.
CPO price is influenced by other vegetable oil price because they compete to get the markets in vegetable oil trade globally.
Crude oil price increased because of the uncertain policy published by Federal Reserve USA to escalate interest rate to muffle inflation which made CPO more interesting as biodiesel material.
Reuters’ technical analyst, Wang Tao noted, CPO could be at RM 3.782 per ton, and could be increasing at RM 3.900 – RM 3.999 per ton. (T2)