CPO Price Increased 10,5% in a Week: The Highest in A Year

CPO Price Increased 10,5% in a Week: The Highest in A Year

InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange increased on Friday (29/4/2022) and the highest weekly price in a year because of palm cooking oil materials and palm cooking oil export ban by the Government of Indonesia. This was a worry for the supply and made vegetable oil significantly increase.

Reference CPO contract at FCPOc3 for July 2022 delivery at Bursa Malaysia Derivatives Exchange increased RM 78 per ton or about 1,13% to be RM 6.992 (US$ 1.603,67) per ton in the early trade and increased in third of four sessions.

In this week, CPO price contract increased 10,5% and the highest one since 7 May 2021.

As InfoSAWIT quoted from Reuters, to solve the lack of palm cooking oil stocks, the government of Indonesia banned palm oil products to export for the next few weeks. Indonesian Palm Oil Board (IPOB) predicted, the export ban would be until May 2022.

Meanwhile for the lack of sunflower oil, Unilever substituted its products by using canola to minimize the spent when vegetable oil price got more expensive.

Soyoil active contract at Dalian DBYcv1 increased 1,3%, while CPO contract at DCPcv1 increased 4,5%. Soyoil price at Chicago Board of Trade BOcv1 decreased 0,8% after it increased 3,2% yesterday.

Reuters’ technical analyst, Wang Tao predicted, CPO could be at RM 7.107 per ton, within the potential increasing at RM 7.239 to RM 7.419 per ton. Bursa Malaysia would temporarily not operate until 5 May for Idul Fitri 1443/2022 holidays. (T2)