InfoSAWIT, SINGAPURA – Crude palm oil (CPO) contract price at Malaysia Derivatives Exchange decreased on Tuesday (24/10/2023) because of highly soyoil harvests in America and Malaysian ringgit got better though some increasing purchase limited the cheaper price.
As quoted from Reuters, CPO contract price with the code FCPOc3 for January 2024 delivery at Malaysia Derivatives Exchange decreased RM 74 per ton or about 2% to be RM 3,679 (US$ 770,15) per metric ton in the early session and it was the second row – decreasing price.
Soyoil harvest in the United States of America would escalate seed oil supply and its derivatives. The farmers in the country harvested one fourth of soyoil plantations and 59% of corn plantations on Sunday, according to weekly data published by US Department of Agriculture that was published on Monday.
The numbers could be the same with trade expectation which would be more than five years in average in one planting cycle.
Meanwhile Malaysian ringgit, MYR= the official currency in palm oil trade increased 0,3% towards US dollar. This made palm oil less interesting for those that trade in foreign currency.
But the increasing palm oil demands would prevent the bigger losses.
Data published by AmSpec Agri Malaysia and Intertek Testing Services showed that palm oil exports from Malaysia on 1 - 20 October could be increasing between 7,9% and 9,9% from the previous month.
Still from Reuters, soyoil contract at Dalian with the code DBYcv1 decreased 1,5%, CPO contract with the code DCPcv1 decreased 1,7%. Soyoil price at Chicago Board of Trade BOcv1 decreased 1,1%, the lowest level for the past four months.
Palm oil has something to do with other vegetable oil price because they compete to get parts in vegetable oil trade globally. (T2)