InfoSAWIT, JAKARTA – Crude palm oil (CPO) price at Bursa Malaysia Derivative Exchange increased, Tuesday (31/5/2022), after it decreased for crude oil and other vegetable oil price increased and CPO production in Malaysia still remained low in number.
CPO reference contract at FCPOc3 for August 2022 delivery at Bursa Malaysia Derivatives Exchange increased 1,83% to be RM 6.346 (US$ 1.450,85) per ton in the early trade.
As InfoSAWIT quoted from Reuters, crude oil increased on Tuesday after European Union decided to cut off crude oil import from Russia by the end of 2022. This would be the worry for the trade would be close when the demands would be increasing heading to the summer peak season in the United States of America and Europe.
Crude oil influenced CPO price because vegetable oil is often used to be biodiesel material.
Malaysian Palm Oil Association (MPOA) predicted, about 52.000 migrant workers would be arriving by the end of this year. The numbers would not be enough and too late to increase the plantation production to be normal again.
CPO export from Indonesia would be running again after the first export permit was approved and after CPO ban was revoked last week, as senior officer mentioned.
Soyoil contract at Dalian, DBYc1 increased 0,67% while CPO contract at DCPc1 increased 0,77%. Soyoil price at Chicago Board of Trade BOcv1 increased 0,71%.
Reuters’ technical analysis, Wang Tao said, CPO could be at RM 6.423 per ton, and would be stable at RM 6.220 per ton. (T2)