Jakarta, CNBC Indonesia – Crude palm oil commodity prices or crude palm oil (CPO) weakened in trading today Friday (21/8/2020).
At 10.50 WIB, the CPO price for the delivery contract November 2020 on the Bursa Malaysia Derivatives Exchange fell 1,61% to RM 2.694/your plummeted below its psychological level RM 2.700/your. The decline in CPO prices occurred after the rival soybean oil and CPO oil on the Dalian Commodity Exchange also collapsed.
It is known that the prices of the two oils usually affect each other because these oils compete to dominate the vegetable oil market share
This decline was due to the release of data on the 18.20% drop in vegetable oil exports from the neighboring country from August 1 to 20. Malaysian CPO exports fell from last July at 1,157,020 tons to 946,338 this month, said a cargo surveyor from Intertek Testing Service Thursday (20/8/20).
The drop in exports from the neighboring country again made the market players catch up because previously one of the largest importers of crude palm oil in the world, namely the India Solvent Extractors Association of India (SEA), reported that CPO imports in India managed to increase 1.4% in July
This increase touched its highest level in 10 months after the lockdown due to Covid-19 was reduced. However, it seems that market players are afraid that the increase in Indian imports will not last long because investors are doubtful about the economic recovery after being attacked by the corona virus pandemic which still tends to be fragile.
The commodity futures contract for soybean oil on the Dalian Stock Exchange itself fell 1.33%, meanwhile for the CPO price on the same exchange it fell by 1.82%.
(trp/trp)
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