The Palm Scribe

Overproduction affects CPO price

Kontan Harian, 5 October 2018

Price of crude palm oil (CPO) recorded a 7.96% decrease in Q3 2018. CPO was priced at 2,174 ringgit per metric ton on Friday (September 28), even though it was priced at 2,362 ringgit per barrel at the end of Q2 2018. Asia Trade Point Futures analyst Deddy Yusuf on Thursday (October 4) argued that the trade war between the US and China was affecting CPO price, because demands for CPO mostly come from India and China.

He predicted CPO price to remain low for the rest of the year, considering that Indonesia’s CPO production will increase by around 4 million metric tons to 6 million metric tons in Q4 2018.

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