InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) at Bursa Malaysian Derivative Exchange got cheaper, Thursday (7/4/2022) as crude oil price also decreased. The traders waited for the March production estimation to value the last stocks in the late of this month.
The reference CPO contract at FCPOc3 for June delivery at Bursa Malaysia Derivatives Exchange got cheaper RM 26 per ton, or decreased 0,44% to be RM 5.886 (US$ 1.395,61) per ton during the early days of the trade for two days in a row.
In a discussion released by Reuters, Monday (4/4/2022), it was predicted that CPO production in March 2022 would be increasing 16,4% from the previous month to be 1,32 million tons but it will be balanced by the increasing exports. The final stocks in the late of the month would be reaching 1,53 million tons or increasing 0,5%.
The increasing CPO production would increase the stocks and could be correcting its price.
CPO price got cheaper after it also decreased 5%. This was the cheapest for the past three weeks. In the previous session after consumer countries announced to massively released the emergency stocks to balance the stocks which have been stopped from Russia.
The cheaper crude oil price at the exchange made palm oil less interesting as biodiesel material.
Soyoil contract at Dalian DBYcv1 increased 1,3%, while CPO contract at DCPcv1 increased 0,9%. Soyoil at Chicago Board of Trade BOcv1 also increased 0,4%.
Reuters’ technical analysis, Wang Tao predicted, CPO would be decreasing at about RM 5.606 to RM 5.744 ringgit per ton. (T2)