Jakarta, CNBC Indonesia – The price of Indonesia’s leading export commodity, namely crude palm oil (crude palm oil/CPO) fell this week in line with the weakening of world crude oil prices.
The price of the CPO futures contract at Bursa Malaysia was observed to have fallen 11.7% in the last week to MYR 4,517/ton.
The decline in CPO prices has actually occurred since the second week of last June. One of the triggers for the weakening of CPO prices was the increase in Indonesian stocks in June 2022.
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On the other hand, Indonesia’s policy to boost palm oil exports has also contributed to lower prices, according to analysts.
But on the other hand the Indonesian government also plans to implement the B35 policy at the end of the month to help absorb the excess supply of palm oil.
Then from Malaysia, the Domestic Palm Oil Board (MPOB) is scheduled to release demand and supply data next week.
A poll conducted by Reuters had forecast end-June inventories jumping 12.3% from the previous month.
The negative sentiment that caused CPO prices to drop not only came from the potential increase in supply and stock but also from the decline in world crude oil prices.
In the past week, world oil prices have fallen more than 3%. The trigger is the concern of market participants about the global economic slowdown.
The soaring oil price this year made inflation rise sharply and threatened the economy.
To prevent the occurrence of a condition known as overheatingglobal central banks, especially the US monetary authority (The Fed) chose to increase their benchmark interest rates aggressively.
It is feared that monetary tightening will have an impact on slowing economic growth if carried out aggressively and simultaneously, thereby triggering expectations of weakening oil demand.
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(trp/luc)
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