InfoSAWIT, KUALA LUMPUR – In October 2023, crude palm oil (CPO) price could be better than it when in September it was cheaper. When many hunters started bargaining, CPO price would be about RM 3.750 (equal to US$ 798) until RM 4.000 (or equal to US$ 851). Though there is still hope that CPO price would get better, some main factors could have something to stronger bullish.
As quoted from PalmPulse published by Malaysian Palm Oil Council (MPOC), the first factor could be the high palm oil stock in Malaysia which still reaches more than 2 million tons and it is predicted the stocks remain high by the late of 2023. “Over supply could press CPO price because of the stable demands to balance overstock,” PalmPulse noted.
The second factor could be CPO price pressure because it has something to do with soyoil trade. United States of America (USA) starts planting soyoil in September 2023 while South America projected, soyoil could increase its production up to 15,5% next year. The increasing soyoil supply could reduce CPO as the alternative oil in vegetable oils.
The third could be sunflower oil which would be more economical than CPO in Europe. This could be a serious competitor for CPO and would be negative for CPO price because many consumers would prefer cheaper sunflower oil.
Though CPO price could be better, such factors could be potentially getting strong bullish in this very short. (T2)