InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) price at Bursa Malaysia Derivatives Exchange got weaker on Tuesday (6/9/2022), as the impact of high or abundant stock that reached 2 million tons. The numbers are the highest ones for the past two years. On the other hand, soyoil price got weaker because of the closed access in some cities in China.
As quoted from Reuters, CPO reference contract at FCPOc3 for November 2022 delivery at Bursa Malaysia Derivatives Exchange decreased RM 24 per ton or about 0,61% to be RM 3.892 (US$ 867,20) per ton in the early trade; this was cloase to the lowest level in the past one month.
The survey that Reuters did on Monday (5/9/2022) showed that CPO stocks in Malaysia by the late of August increased 14,5% to be 2,03 million tons, the highest ones since April 2020.
According to Refinitiv Commodities Research, the cheaper price sentiment could happen by the close access in Chengdu and other port cities, such as, Dalian and Shenzhen, China in the recent days to stop the spread of Covid-19. “This worried and impact to the decreasing imports or demands,” the institute mentioned.
CPO contract at Dalian DBYcv1 increased 0,8%, while CPO contract at DCPcv1 decreased 0,7%. Soyoil price at Chicago Board of Trade BOcv1 did decrease 1,4%.
Reuters’ technical analyst, Wang Tao note that CPO could be remaining at RM 4.000 per ton but could potentially be increasing between RM 4.085 to RM 4.452 per ton. (T2)