InfoSAWIT, JAKARTA – Crude palm oil (CPO) contract price at Malaysia Derivatives exchange increased for the second session, Friday (29/9/2023). It returned the previous decreasing price because many traders wanted to re-purchased it heading to midday lunch break.
As quoted from Reuters, CPO reference contract price with the code FCPOc3 for December 2023 delivery at Malaysia Derivatives Exchange increased RM 30 per ton or 0,80% to be RM 3,801 (US$ 810,97) per metric ton. It was getting cheaper to be RM 3.750 in the early session. In this week, CPO contract price increased 3,26%.
Trader that its headquarter in Kuala Lumpur said, though the opening session was cheaper in the morning because of soyoil got cheaper at Chicago Board of Trade, palm oil purchase continued heading to lunch break.
For information Dalian Exchange would be not operating on 29 September to 6 October because of The Mid – Autumn Festival and National Day. Soyoil at Chicago Board of Trade BOcv1 increased 0,32 %.
Palm oil has something to do with other vegetable oil because they compete to get parts in vegetable oil trade globally.
Because of El Nino supporting the increasing price in 2024, it is predicted that CPO could be increasing 11% because of the decreasing production in the main producer countries, such as Indonesia. The worse drought would be happening in October 2023.
Meanwhile in Malaysia, palm oil production could be increasing because there have been many plantation workers and mature plantations to solve the impacts of El Nino.
Surveyor cargo - Intertek Testing Services reported that palm oil exports from Malaysia on 1 - 25 September increased 17,5% to the same period in August 2023. Independent inspection company, AmSpec Agri Malaysia mentioned that palm oil exports from Malaysia on 1 - 25 September increased 15,2% to on 1 - 25 August. (T2)