InfoSAWIT, MUMBAI – Crude palm oil (CPO) contract price at Malaysia Derivatives Exchange increased on Friday (13/10/2023) because ringgit Malaysia got cheaper, and the increasing demands from China. It also happened that Indonesia as the main CPO producer in the world confirmed that Indonesia would not oblige every export activity should be from Indonesian CPO exchange to minimize the worry about supply pressure.
As quoted from Reuters, CPO reference contract price with the code FCPOc3 for December 2023 delivery at Malaysia Derivatives Exchange increased RM 46 per ton or about 1,26% to be RM 3,684 (US$ 778,69) per metric ton in the midday lunch break after it increased hardly 2,5% on Thursday.
This week, ringgit currency hit the lowest level since on 23 June to be RM 3.520.
A vegetable oil trader in Mumbai said that CPO is in oversold situation and this got support from the cheaper ringgit currency. “And China increased its purchase,” he said, as quoted from Reuters.
Cargo surveyor released data and showed that palm oil product export from Malaysia on 1 - 10 October increased 12,5% to be 29,6% from the previous month,
Soyoil at Chicago Board of Trade BOc2 also increased 0,79% at 04.36 GMT (Greenwich Mean Time).
Indonesia launched its CPO exchange on Friday (13/10/2023), but it is not obligation for stakeholders to get into it. Minister of Trade Indonesian Republic, Zulkifli Hasan said to reinforce CPO trade, the government took significant initiative by designing CPO trade substitution in CPO exchange. The goal is very clear which is to get transparent, fair, accountable, and real time CPO price. It should involve many traders, starting from the sellers and also buyers.
“The Regulation of Commodity Futures Trading Supervisory Agency Number 7 / 2023 about CPO trade procedures in exchange would be voluntary. We have to be used to that the government regulates only. We should not oblige (every party) but we hope the cooperation and collaboration to deliver interests for our other friends and for our same interests,” the man called Zulhas, said. (T2)