InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange decreased 4% on Tuesday (2/8/2022). This extended the second day – loss because many worried about the abundant palm oil export supply from Indonesia and massive trade which decreased the price.
CPO contract at FCPOc3 for October 2022 delivery at Bursa Malaysia Derivatives Exchange got cheaper RM 163 or about 4,01% to be RM 3.897 (US$ 880,58) per ton in the early trade.
The Government of Indonesia still implements domestic market obligation (DMO) and domestic price obligation (DPO) to support palm cooking oil supply in this country.
But to accelerate palm oil exports, the Government of Indonesia through Ministry of Trade published export quota multiplier which was only seven times, based on the Decision of General Director of Foreign Trade Number 14/DAGLU/KEP/07 /2022 about Decision of Volume Multiplier to Publish Export Approval on Crude Palm Oil, Refined, Bleached And Deodorized Palm Oil, Refined, Bleached And Deodorized Palm Olein, and Used Cooking Oil, decided, it becomes nine times.
The regulation that InfoSAWIT got, Tuesday (2/8/2022) noted, that the policy has been effectively running since 1 August 2022.
As quoted from Reuters, soyoil price at Chicago Board of Trade decreased to the lowest level in the past one week after the Government of USA reported, their plantations need improvement.
Soyoil price at Chicago Board of Trade BOcv1 did decrease 1,9%. The active soyoil contract at Dalian DBYcv1 did too 1,7%, CPO contract at DCPcv1 did decrease 3,3%.
Reuters’ technical analyst, Wang Tao noted, CPO could be cheaper at RM 3.857 per ton because it was once at RM 4.085 per ton. (T2)