GenPI.co – The price of palm oil or crude palm oil (CPO) fell slightly on Wednesday (6/4) in line with stock uncertainty in global markets.
Market participants continue to observe the impact of the new sanctions against Russia so that concerns regarding vegetable oil stocks in the market are getting bigger.
Palm contracts for June delivery on the Bursa Malaysia Derivatives Exchange closed down MYR 7, or 0.12 percent, to MYR 5,908 (USD 1,402.33) per tonne.
READ ALSO: Russia Ukraine heats up again, palm prices rise sharply
Refinitiv, a commodity research institute, noted that there is currently a disruption in the sunflower seed oil trade in the Black Sea region.
In addition, Indonesia has removed the domestic market obligation (DMO) for CPO.
READ ALSO: Stocks Rise Slightly, Palm Prices Finally Soar 2 Percent
The two issues are expected to be positive for the stock Palm oil in the global market.
Refinitiv assesses that palm oil shipments from Indonesia and Malaysia will increase in the near future.
READ ALSO: Because of India, Palm Oil Prices Drop More than 3 Percent
“This is offset by an increase in production which is gradually increasing seasonally,” he said.
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