InfoSAWIT, BEIJING - Crude palm oil (CPO) price at Malaysia Derivatives Exchange decreased on Monday (6/11/2023). It happened for the increasing Malaysia ringgit and the prediction of increasing stocks in October 2023.
As quoted from Reuters, CPO reference contract with the code FCPOc3 for January 2024 delivery at Malaysia Derivatives Exchange decreased RM 38 per ton or about 1,01% to be RM 3,730 (US$ 799,06) in the early session.
Malaysia ringgit = MYR, the official currency in palm oil trade increased 1,23% towards US dollar and made it more expensive for traders that trade in foreign currency.
Survey by Reuters on Friday (3/11) mentioned that palm oil stock in Malaysia by the late of October was in the highest level since May 2019 because of higher production and decreasing exports. These escalated October stocks.
Palm oil production globally could be decreasing next year because of the impacts of El Nino while demands in vegetable oil and energy sectors would be also increasing. These would have something to do with the price, as industrial analysts mentioned last week.
Industrial analyst, Dorab Mistry said that palm oil production in Indonesia would be decreasing, at least, one million metric tons. Malaysia’s palm oil production would have no change.
Still from Reuters, soyoil conract price at Bursa exchange with the code DBYcv1 decreased 0,22%, CPO contract with the code DCPcv1 did too 0,8%. Soyoil price at Chicago Board of Trade BOcv1 increased 0,06%.
Palm oil has something to do with other vegetable oil price because they compete to get parts in vegetable oil trade globally. (T2)