The Palm Scribe

Oversupply hampers CPO price strengthening

Bisnis Indonesia, 5 October 2018

Price of crude palm oil (CPO) rose 21 points or 0.95% to 2,220 ringgit per metric ton on Thursday (October 4), reflecting a 12.56% year-to-date increase. A rising crude oil price will make CPO a more attractive choice for biodiesel production, which in turn will boost CPO price, Interband Group of Companies Senior Trader Jim Teh said, as cited from “Reuters” on Thursday (October 4). However, he cautioned that the CPO price strengthening may not last long as expectations of oversupply in Malaysia will eventually put pressure on the commodity.

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