Bisnis.com, JAKARTA – The movement of crude palm oil (CPO) prices back up in early trading today, Wednesday (28/12/2016), due to weakening performance of Malaysian ringgit currency.
CPO futures contract for March 2017, the most active contract on Bursa Malaysia, opened today down 0.13% or 4 points at 3,124 ringgit per ton.
The movement then turned up 0.64% or 20 points to the level of 3,148 ringgit per tonne at 10:08 pm.
On Tuesday(27/12), CPO prices closed a rebound of 2.22% or 68 points to 3,128 ringgit amid speculation tightening production as well as increasing demand.
“Production in Malaysia this month tends to be lower than expected when it takes longer time for trees to grow due to drought,” Gnanasekar Thiagarajan, head of trading and hedging strategies at Kaleesuwari Intercontinental, said yesterday.
Also supporting the strengthening of palm oil, according to Intertek Testing Services data, Malaysia’s palm oil exports from November 1-25 fell 5.6 percent to 845,441 tons from 895,625 tons previously.
“Recent export figures show a number of clear purchases sustaining palm oil,” he added.
Meanwhile, the exchange rate ringgit this morning weakened 0.08% to 4.4827 per US dollar at 10:23 pm after opening 0.02% thin gains at 4.4783 positions.
Contract Price CPO Movement March 2017
(Pk. 10.08 WIB)