InfoSAWIT, SINGAPORE – Crude palm oil (CPO) contract price at Malaysia Derivatives Exchange increased on Tuesday (7/11/2023), after two previous sessions decreased. It happened for the decreasing Malaysia ringgit and the signs that China would escalate its demands.
As quoted from Reuters, CPO reference price with the code FCPOc3 for January 2024 delivery at Malaysia Derivatives Exchange increased RM 21 per ton or about 0,5% to be RM 3,774 (US$ 810,22) per metric ton in the lunch break.
Manager of Trade of Kantilal Laxmichand and Co in Mumbai, Mitesh Saiya said that CPO is cheaper than soybean because soybean stocks are lower in numbers, high biodiesel consumption, and many biodiesel mills are in maintenance process,” he said, as quoted from Reuters.
Data from China Customs revealed that the country imported 5,16 million metric ton of soyoil in October 2023, increased 25% from last year because soyoil stocks from Brazil always came in the port on Tuesday.
The first ten month - imports in the second biggest importer country reached 82,42 million tons or increased 14,6% from the same period last year.
The imports showed the increasing soyoil demands which compete with palm oil to get markets.
Still from Reuters, soyoil contract price at Dalian with the code DBYcv1 also increased 0,6 %, CPO contract with the code DCPcv1 did too 1,2%. Soyoil price at Chicago Board of Trade BOcv1 decreased 0,4%.
Soybean harvest in USA which keeps increasing has something to do with its price. The harvest covered up 91%, the highest of the average harvest that reached 92% vyt surpassed the average harvest in the past five years that reached 86%.
Palm oil stock in Malaysia by the late of October 2023 reached the highest level since May 2019 because the increasing production covered up the increasing exports, according to Reuters’ survey last Friday. (T2)