InfoSAWIT, SINGAPORE – Crude palm oil (CPO) reference contract price at Malaysia Derivatives Exchange increased on Friday (3/11/2023) because many worried about the lack of supply that surpassed the worry about decreasing food imports to india, and decreasing demands in China.
As quoted from Reuters, CPO reference contract price with the code FCPOc3 for January 2024 delivery at Bursa Malaysia Derivatives Exchange was RM 3,784 per ton (US$ 798,82) per metric ton in the break lunch.
It increased 0,2% for the past one week and headed to the increasing price in fourth week in a row.
Director of Comglobal in Singapore, Pranav Bajoria said that palm oil lack of supply was known in the stock exchange if compared to other vegetable oil price.
General Director of Internal Trade Ministry of Trade Indonesian Republic, Isy Karim confirmed that Indonesia would continue to implement Domestic Market Obligation (DMO) for palm oil until 2024 to maintain palm cooking oil price stable. The policy was implementing las year to control the price leap. Palm oil producers could export after they successfully did DMO.
Still from Reuters, soyoil contact price at Dalian Exchange with the code DBYcv1 increased 1,6%, CPO contract price with the code DCPcv1 did increase 1,7%. Soyoil price at Chicago Board of Trade BOcv1 also increased 0,5%.
Palm oil has something to do with other vegetable oil price because they compete to get part in vegetable oil markets globally.
To Reuters, six traders noted, vegetable oil imports to India in October 2023 decreased to the lowest level in the past 16 months because the country has had higher stock and encouraged refinery to limit vegetable oil purchase. (T2)