InfoSAWIT,KUALA LUMPUR - Crude palm oil (CPO) price on Thursday (1/9/2022) hit the lowest level in the past one week because other vegetable oil prices did decrease when supply prediction got abundant in the peak season.
As quoted from Reuters, CPO reference contract at FCPOc3 for November 2022 delivery at Bursa Malaysia Derivatives Exchange got cheaper RM 67 per ton or decreased 1,62% to be RM 4.077 (US$ 909,64) per ton in the midst day on Thursday. It was the cheapers since 24 August.
The markets are in pressure and could be cheaper because some expected, there would be much better production in August and the exports could not do much. It is predicted, the stock could be more than 2 million tons, as a trader in Kuala Lumpur said.
CPO exports from Malaysia in August increased 1,6% to be 1.299.116 tons from July, as cargo surveyor - Intertek Testing Services reported, Wednesday.
Prior, the Government of Indonesia came to a conclusion to stop export levy which would be available until 31 October 2022. It was decided in the meeting of Steering Committee of Palm Oil Plantation Fund Management Agency (PFMA), Sunday (28/08/2022). Minister of Finance told the outcome which is regulated in the Regulation of Minister of Finance (RMF) Number 130/Pmk.05/2022 about the Second Substitution on RMF Number 103/Pmk.05/2022 about Service Tariff on Public Service Obligation in Palm Oil Plantation Fund Management Agency in Ministry of Finance as in the release that InfoSAWIT recently got.
In the meantime, Ministry of Trade in the release that InfoSAWIT got on Wednesday (31/8/2022) decided that CPO reference price to decide Out Fee on 1 – 15 September 2022 is US$ 929,66/metric ton (MT). It is more expensive US$ 29,14 or increasing about 3,24 percent from 16 – 31 August 2022 which was US$ 900,52/MT.
Soyoil contract at Dalian DBYcv1 decreased 0,7%, CPO contract at DCPcv1 did decrease 0,3%. Soyoil price at Chicago Board of Trade BOcv1 did too 1%.
Reuters’ technical analyst, Wang Tao noted, CPO could penetrate to be at RM 4.085 per ton but could potentially get cheaper to be RM 3.857 per ton.
(US$1 = 4,4820 ringgit)