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CPO Increased 4% when Indonesia Deleted Export Citation



CPO Increased 4% when Indonesia Deleted Export Citation

InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange increased on Monday (18/7/2022), as same as the increasing soyoil price. The policy published by the Government of Indonesia that temporarily vanished export citation for CPO and its derivatives limited the increasing (supply).

CPO reference contract at FCPOc3 for October 2022 delivery at Bursa Malaysia Derivatives Exchange got better RM 148 per ton or increased about 4,08% to be RM 3.777 (US$ 849,15) per ton in the early trade.

On Friday (15/7/2022) the Government of Indonesia officially deleted export citation which Palm Oil Plantation Fund Management Agency (PFMA) manages by saying, to get smallholders’ fresh fruit bunch (FFB) get more expensive.

The policy was regulated in the Regulation of Minister of Finance (RMF) Number 115/PMK.05/2022 about the Substitution on RMF Number 103/PMK.05/2022 about Public Service Obligation on Palm Oil Plantation Fund Management Agency in Ministry of Finance.

In the Whatsapp from Director of PFMA that InfoSAWIT received, Saturday (16/7/2022), he wrote, the policy would be temporarily available since it was announced on 15 July to 31 August 2022. 

Soyoil contract at Dalian, DBYcv1 increased 3,3%, CPO contract at DCPcv1 did too 3,5%. Soyoil price at Chicago Board of Trade BOcv1 decreased after it increased 4% on Friday (15/7/2022).

CPO price is influenced by related vegetable oil price for they compete to get the markets in the globe.

Reuters’ technical analyst, Wang Tao noted, CPO could be at RM 3.782 per ton and potentially increase about RM 3.900 – RM 4.090 per ton. (T2)


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