CPO Gets Better for the Decreasing Stocks

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CPO Gets Better for the Decreasing Stocks

InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange increased for the third session in a row, Tuesday (12/4/2022), hit the highest score for the past three weeks because of CPO stocks in March will be decreasing.

Reference CPO contract at FCPOc3 for June 2022 delivery at Bursa Malaysia Derivatives Exchange increased RM 123 per ton or about 2,05% to be RM 6.128 (US$ 1.447.50) per ton in the early trade, the highest one since 24 March.

As quoted from Reuters, CPO stocks in Malaysia by the late of March 2022 decreased to the lowest level in the past year. This happened for the increasing exports and decreasing import for the decreasing production, according to Malaysian Palm Oil Board (MPOB), Monday (11/4/2022).

According to AmSpec Agri Malaysia on Monday, palm oil exports on 1 - 10 April decreased 26,8% from the previous month in the same period.

Crude oil at the same exchange increased because the stocks considered the further energy sanction to Russia and OPEC warned that it is impossible to get enough production to balance the loss of supply.

The expensive crude oil at the exchange made CPO more interesting as biodiesel material.

Soyoil contract at Dalian DBYcv1 increased 1,2%, while CPO contract at DCPcv1 increased 2,2%. Soyoil at Chicago Board of Trade BOcv1 increased 1%.

Reuters’ technology analysis, Wang Tao told, CPO could be at RM 6.104 per ton or could be about RM 6.188 – RM 6.326 per ton. (T2)