Jakarta, CNBC Indonesia – Futures contract price (futures) crude palm oil (crude palm oil/CPO) during the week soared on the Malaysian Derivatives Exchange to approach the psychological level of MYR 5,000/ton.
The price of CPO contract for delivery in December 2021 shot up 2.4% on Friday (8/10/2021) to MYR 4,966/ton. On a weekly basis, CPO prices have skyrocketed by 10.2% compared to last weekend’s closing (MYR 4,505/ton).
In five trading days, the price of Indonesia’s mainstay commodity weakened only on Thursday, which was 0.5%. This week’s strengthening continued the trend of the previous week where CPO prices also strengthened weekly, by 1.4% from the level of RM 4,441/ton.
Friday’s closing position of MYR 4,966 per tonne was an all-time high. Throughout the year (year-to-date/YTD), CPO prices jumped 37.9% with a rally so far this month by 8.1%.
The increase occurred amid a surge in demand for basic commodities such as oil, gas and coal following expectations of a global economic recovery. The increase in world energy prices has made the price of CPO, which is the raw material for biodiesel, also strengthen.
The world CPO market also tends to recover, as seen from data from the Association of Palm Oil Entrepreneurs (GAPKI) which recorded palm oil exports as of August, including processed products such as oleochemicals, jumped 59% year-on-year to 4.27 million tons.
Meanwhile, from India, consumption of vegetable oil is likely to be boosted after the government cut import duties for CPO et al to 8.6%, which took effect on September 11. As a result, the price of these vegetable oils in the Indian market weakened in the range of 0.2% to 1.9%.
CNBC INDONESIA RESEARCH TEAM
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