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CPO Price in Malaysia Exchange Could be Potentially Better



CPO Price in Malaysia Exchange Could be Potentially Better

InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) price at Bursa Malaysia Derivatives Exchange increased on Monday (5/9/2022). It was the same with the crude oil price but CPO contract price still hits the lowest level in the previous one month.

As quoted from Reuters, CPO reference contract at FCPOc3 for November 2022 delivery at Bursa Malaysia Derivatives Exchange increased RM 3 per ton or about 0,08% to be RM 3.918 (US$ 873,29) per ton in the early trade.

Still from Reuters, CPO price decreased 6% last week after the main buyer, China had to get lockdown because of the spread of Covid-19 in Chengdu and Shenzen. This is about to stop the spread and raises worry about vegetable oil demands.

In Indonesia, the extension of zero export levy until 31 October 2022 would be the moment to make smallholders’ fresh fruit bunch (FFB) price remain expensive.

General Secretary of Indonesian Palm Oil Association (IPOA), Eddy Martono said, palm oil product export levy extension is very good because it reduces the cost and crude palm oil (CPO) price in the domestic could be more expensive.

“This automatically would make smallholders’ fresh fruit bunch (FFB) get more expensive and the effect to export activity would increase domestic market obligation (DMO) ration,” he said to InfoSAWIT, Saturday (3/9/2022).

Soyoil contract at Dalian DBYcv1 increased 1,4%, CPO contract at DCPcv1 did increase 0,4%. While at Chicago Board of Trade it was close for public holiday.

Reuters’ technical analyst, Wang Tao noted, CPO could be increasing to be RM 4.000 per ton because it was once at RM 3.857 per ton. (T2)


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