InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) price in Malaysia got cheaper after it was in rally for seven sessions in a row. The cheaper CPO might happen for some factors, such as, the cheaper crude oil and the increasing Malaysia ringgit that balanced the positive factors, such as, the increasing demands from India and the concern of supply in the markets.

As InfoSAWIT quoted from Reuters, in the early session, CPO reference contract price for December 2024 delivery at Malaysia Derivatives Exchange got cheaper RM 25 per ton or about 0,6% to be RM 4.127 per metric ton. It reflected the sentiment of the markets in the economic condition nowadays.

Crude oil price in the globe got cheaper for the past three days and Brent contract for November delivery got decreased 0,45% to be $71,28 per barrel at 02.45 GMT. It happened for the expectation to increase oil supplies from Libya and the groups of Organization of Petroleum Exporting Countries (OPEC) + groups.

The increasing currency of Malaysia ringgit that reached 0,29% towards US dollar, multiplied the pressure to CPO, made the commodity relatively more expensive for the foreign buyers. In the contrary, soyoil at Dalian did increase 0,1% and so did CPO at Dalian that reached 1,06%. This showed the variety among the vegetable oils.

In the future, CPO price could potentially face the support level at RM 4.120 per metric ton with the further decreasing if the level got penetrated, as the technical analysis of Reuters, Wang Tao said.

CPO price was closely monitored because it would be the same with other vegetable oil price. This reflected the dynamic competiton in palm oil trade globally. (T2)