InfoSAWIT, JAKARTA – The crude palm oil (CPO) price at PT. Kharisma Pemasaran Bersama Nusantara (KPBN) Inacom recorded a Withdraw (WD) status with the highest bid at IDR 14,830/kg on Thursday (21/11/2024). This marks a 2.91% decline, or approximately IDR 445/kg, from Wednesday’s (20/11/2024) price of IDR 15,275/kg.
Based on information from KPBN, the Franco Dumai price opened at IDR 15,000/kg but ended in Withdraw status with the highest bid at IDR 14,830/kg. The Talang Duku price opened at IDR 14,800/kg and saw a Withdraw with the highest bid at IDR 14,630/kg. Meanwhile, the Sei Tapung CPO price was set at IDR 14,761/kg.
According to Reuters, Malaysian palm oil futures fell sharply on Thursday (21/11/2024) amid concerns over U.S. tariff policies on China and weak global demand for palm oil, leading to a massive sell-off in the vegetable oil market.
The benchmark palm oil contract, FCPOc3, for February 2025 delivery on the Bursa Malaysia Derivatives Exchange dropped by RM 140 per ton or about 2.91%, closing at RM 4,675 (US$ 1,047.50) per metric ton during the midday break. This follows a 2.21% decline in the previous session.
Paramalingam Supramanian, Director of Bestari Brokerage based in Selangor, attributed the sell-off to speculation that the U.S. administration might impose a 40% tariff on China. Such policies could prompt China to shift its soybean purchases from the U.S. to Brazil and Argentina, indirectly affecting palm oil demand.
In parallel, soybean oil futures in Dalian (DBYcv1) fell by 1.24%, while palm oil contracts (DCPcv1) dropped 3.3%. Soybean oil prices on the Chicago Board of Trade (BOcv1) also saw a slight decline of 0.14%.
KPBN Tender Results (IDR/kg, Excluding VAT) for Thursday (21/11/2024)
CPO:
- Franco Dumai: IDR 15,000 (WD). Highest bid: IDR 14,830 - IBP
- Talang Duku: IDR 14,800 (WD). Highest bid: IDR 14,630 - MM
- Sei Tapung: IDR 14,761 - SDS
CPKO:
- Lampung: IDR 24,974 (WD). Highest bid: IDR 24,050 - IKIN
- Palembang: IDR 24,831 (WD). Highest bid: IDR 24,450 - IKIN
The decline in CPO prices reflects ongoing volatility in the global vegetable oil market, with stakeholders closely monitoring geopolitical developments and trade policy implications. (T2)
