Commodity Watch Indonesia: Crude Palm Oil Down, Ringgit Strengthens
The crude palm oil (CPO) price continues to decline, falling more than 1 percent on Monday morning (24/07). The CPO futures contract (October 2017 delivery), the most active contract on the Bursa Malaysia, had shed 1.05 percent or 27 points to 2,546 ringgit per ton by 11:20 am local Jakarta time.
Earlier this morning, CPO prices started with a 0.89 percent decline to 2,550 ringgit per ton immediately after the opening of trading.
Last Friday (21/07), CPO prices had ended down 0.12 percent to 2,573 ringgit per ton, while in fact CPO prices had maintained its gains in early trading on Friday, in line with the strengthening of soybean oil and a more positive export picture after posting a strong rally in trading on Thursday (20/7).
As quoted by Bloomberg, CPO prices are facing selling pressures due to higher production expectations, profit-taking after the rally on Thursday, as well as the appreciating Malaysian ringgit.
On Monday morning the Malaysian ringgit strengthened 0.02 percent to 4,2830 per US dollar, after on Friday having appreciated 0.16 percent to 4,2840.
Crude Palm Oil Futures (October 2017 Contracts):
| 18 July |
19 July | 20 July |
21 July | 24 July | |
| Price (ringgit/ton) |
2,513 | 2,525 | 2,576 | 2,573 | 2,546¹ |
¹ 11:20 am local Jakarta time
Source: Bisnis Indonesia