Bisnis Indonesia, 12 October 2018
The benchmark palm oil contract on the Malaysia Derivatives Exchange was down 29 points or 1.32% to 2,164 ringgit a metric ton on Thursday (October 11), which contributed to 14.20% current year decrease. According to data compiled by the Malaysian Palm Oil Board (MPOB), crude palm oil (CPO) reserve in the country went up 1.45% from 2.5 million metric tons in August to 2.54 million metric tons in September. CPO production also went up 14.4% in September to 1.85 million metric tons, from 1.62 million metric tons in August.
TA Securities Analyst Angeline Chin, as cited from “Reuters” on Thursday (October 11) expected the demand in October and November may be able to absorb September’s CPO stock. She argued that the stock surge this year won’t be able to decrease CPO price any lower. She predicted CPO price to hit 2,500 ringgit a metric ton at the end of the year and 2,450 ringgit a metric ton in 2019. Meanwhile, Asia Trade Point Futures Analyst Deddy Yusuf Siregar expected CPO export increase from Malaysia to India to maintain CPO price in Q4 2018.