InfoSAWIT, SINGAPORE - Crude palm oil (CPO) price at Malaysia Derivatives Exchange got cheaper on Wednesday (20/9/2023) because the traders considered the decreasing exports from Malaysia and the decreasing currency of ringgit.

As quoted from Reuters, CPO reference contract with the code FCPOc3 for December 2023 delivery at Malaysia Derivatives Exchange got cheaper RM 11 per ton or 0,3%, to be RM 3,738 (US$ 796,68) per metric ton in the early trade.

Until now, the second biggest palm oil producer in the world still maintains CPO export tax in October at 8% and gets CPO reference price cheaper, as the release by Malaysian Palm Oil Board on Tuesday.

Cargo surveyor - Intertek Testing Services mentioned, palm oil exports from Malaysia on 1 - 15 September decreased 11,8% from the previous month to be 580.893 metric ton, on Tuesday. While the other cargo surveyor, Amspec Agri noted, on 1 - 15 September palm oil exports from Malaysia decreased 9,3% from the previous month.

Still quoted from Reuters, soyoil contract price at Dalian with the code DBYcv1 decreased 0,6%, while CPO contract price with the code DCPcv1 had no change. Soyoil price at Chicago Board of Trade BOcv1 increased 0,2%.

Palm oil has something to do with other vegetable oil price because they compete to get part in vegetable oil trade globally.

Malaysia ringgit, MYR as the official currency in palm oil trade had no change towards US dollar after in six days it got cheaper. This made palm oil affordable for those that traded in foreign currency. (T2)