The Palm Scribe

Oversupply drags CPO price down

Kontan Harian, 16 November 2018

The crude palm oil (CPO) price for January 2019 delivery on the Malaysia Derivative Exchange only rose 0.05% to 1,974 ringgit per metric ton on Thursday (November 15), from 1,973 ringgit per metric ton on Wednesday (November 14).

Asia Trade Point Futures analyst Deddy Yusuf Siregar on Thursday (November 15) argued that the bearish trend of global crude oil price was affecting crude palm oil (CPO) price. In addition, Malaysia’s CPO oversupply also contributed to the price fall.

Meanwhile, Monex Investindo Futures analyst Faisyal said that ringgit appreciation against US dollar and India’s policy to raise CPO import duty from 30% to 44% are reducing CPO demand and price.

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