CPO Could be Expensive Still at Bursa Malaysia

Doc. NST
CPO Could be Expensive Still at Bursa Malaysia

InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) price at Bursa Malaysia Derivatives Exchange could be still expensive next week though CPO exports could be higher, as a dealer predicted.

“We assume CPO next week trade would be about RM 4.000 to RM 4.600 per ton because the export expectation gets stronger,” a palm oil trader, David Ng said, as quoted from Bernama.

In last week, CPO at Bursa Malaysia Derivative Exchange was more expensive for some because soyoil also got more expensive at Chicago Board of Trade (CBOT) and the stronger sentiment at the markets globally.

But Malaysia would notice the close trade competition from Indonesia for exporting its supply heading to the seasonal production months.

Maybank Investment Bank Bhd (Maybank IB) claimed, the initiative that Indonesia announced would escalate the exports by scarifying Malaysia.

The Government of Indonesia announced to escalate the conditions in domestic market obligation (DMO), review CPO reference price every two weeks, not once a month, and revise Out Fee structures.

“The August CPO reference gets cheaper to be US$ 872,27 (US$ 1-RM4.44) per ton, the Out Fee is drastically cut off to be US$ 52 per ton from US$ 288 per ton to help (the exporters/companies) to escalate the exports from Indonesia. and this would impact to Malaysia,” he said. (T2)