InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) contract price at Malaysia Derivatives Exchange was closed up to almost RM 4.000 per ton and it is predicted to go on in this very short.

It happened for the decreasing CPO production prediction in Malaysia, soyoil and crude oil that got more expensive and encouraged CPO demands. Crude oil price increased on Wednesday because of the increasing demands in USA as the biggest oil consumers in the world and decreasing US dollar, as Anadolu a news office reported.

Data published by American Petroleum Institute showed that the bigger decreasing crude oil supply as it was hoped in USA relieved the worry about decreasing demands. Crude oil stocks in the country decreased 6,67 million barrels last week, more than the expectation that reached 3 million barrels.

The traders still waited and see the official data from US Energy Information Administrator at the last day, according to the news report.

Palm oil trader, David Ng told Bernama that CPO reference contract would be about RM 4.000 per ton, the last level seen in November last year but it was closed a little bit under the numbers.

“We hope the positive moment would go on with the anticipation that the production would remain decrease that could reduce stocks in a whole in this country. We also predicted next week price would be about RM 3,880 to RM 4,080 per ton," he said, as quoted from Bernama.

Anilkumar Bagani, Commodity Research Chief in Sunvin Group in Mumbai, tld that UOB Kay Hian predicted palm oil production would decrease in Malaysia about 10-14% on 1 - 20 January compared to on 1 - 20 December 2023, when it was the period of seasonal decreasing production. Now the markets still wait for palm oil production data in Malaysia on 1 - 20 January from Southern Peninsula Palm Oil Millers Association (SPPOMA) and Malaysian Palm Oil Association (MPOA).

He also told the first data analysis showed that palm oil export tax and retribution in Indonesia would escalate on 1 - 15 February. This could help palm oil price in Malaysia increase. Prior, he also predicted the better palm oil demands heading to religious months.

In the closing trade, February 2024 spot contract increased RM 34 to be RM 3,997 per ton, March 2024 increased RM 43 to be RM 4,003 per ton, and April 2024 increased RM 46 to be RM 3,994 per ton.

May 2024 increased RM 45 to be RM3,955 per ton, June 2024 increased RM 51 to be RM 3,899 per ton, and July 2024 increased RM 54 to be RM3,839 per ton.

Trade volume also increased to be 64,748 lots from 60,483 on Tuesday but open contract decreased to be 209,735 from 210,359 in the previous.

CPO physical price in southern in February increased RM 50 to be RM 4,030 per tons.

The markets would not operate because of Thaipusam celebration and would operate again on Friday. (T2)