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CPO Price Increased 4%: Buyers from Asia Increased

Foto by Hendra/sawitfest 2021
CPO Price Increased 4%: Buyers from Asia Increased

InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange increased more than 4% on Wednesday (20/7/2022). Palm oil trade got recovered from the loss because of the decreasing price in the previous session. The cheaper CPO encouraged the new demands from Asian buyers.

CPO reference contract at FCPOc3 for October 2022 delivery at Bursa Malaysia Derivatives increased RM 161 per ton or about 4,22% to be RM 3.973 (US$ 892,61) per ton during the early session.

As quoted from Reuters, Asian consumers got more palm oil purchase to re-fill their stock after the price was corrected to the lowest level in the past one year. The Government of Indonesia also temporarily vanish its CPO citations.

Meanwhile the Government of Malaysia maintain the export tax in August for CPO which reaches 8% but got reference price cheaper, according to the official documents from Malaysian Palm Oil Board (MPOB), Tuesday (19/7/2022).

Malaysia lost about 57.880 tons of fresh fruit bunch (FFB) in every single day or about 1,5 million tons of CPO per month because the country is lack of workers, as Ministry of Commodity reported on Tuesday.

Soyoil contract at Dalian DBYcv1 increased 0,7% and CPO contract at DCPcv1 did increase 2,1%. Soyoil price at Chicago Board of Trade BOcv1 got cheaper 0,2%.

CPO is influenced by other vegetable oil price because they compete to get parts in vegetable oil markets globally.

Reuters’ technical analyst, Wang Tao noted, CPO could be at RM 4.246 per ton because five – year cycle price that hit the record at RM 6.698 per ton is over. (T2)