InfoSAWIT, KUALA LUMPUR - Crude palm oil in Malaysia could be increasing up to Rp 12.100 to Rp 13.000 per kilogram (kg) heading to the late of this year, as industrial analysis mentioned.

David Ng of Iceberg X Sdn Bhd said that CPO would be stable at about Rp 11.900 per kg and would be potential to get more expensive in the short term. He also said the slow production could reduce the whole stock in Malaysia and would positively deliver pressure to its price. Besides, the increasing demands from India could be the main factor to support the increasing CPO price.

As InfoSAWIT quoted from bharian.com.my, Thursday (5/9/2024), the increasing CPO price recently might happen for the small production in Malaysia, the tension in Middle East, and the decreasing interest rate by USA.

Last week, CPO contract price for September 2024 got increase more than Rp 13.000/Kg and was closed at Rp 13.063 per Kg. CPO reference contract for November 2024 was closed at Rp 12.745 per Kg.

RHB Research reported that palm oil stock in Malaysia got decrased 5,4 percent to be 1,73 million tons because of the increasing exports but not balanced by the increasing production. The company also predicted the inventory would be recovered in phase and might be reaching two million tons heading to the late of this year except, there would be unexpected weather issues.

The traders also waited for the latest progress from Indonesia and India about export and import tax policy that would have something to do with the trade.

RHB Research maintained its ‘neutral’ opinion about CPO price with the assumption at about Rp 12.500 per Kg in 2024 and Rp 12.100 per Kg in 2025.

It means, the exchange price in Malaysia would get increasing price of the first month in the last three months. It would happen for more expensive vegetable oils and geopolitic factors that had something to do with the trade. (T2)