InfoSAWIT, KUALA LUMPUR – Crude palm oil (CPO) contract price at Malaysia Derivatives Exchange decreased on Thursday (28/12/2023) after it increased for two sessions in a row. It happened for the cheap other vegetable oils though CPO production gets lower and stopped the losses.

As quoted from Reuters, CPO reference contract with the code FCPOc3 for March 2024 delivery at Malaysia Derivatives Exchange got cheaper RM 10 per ton or about 0,27% to be RM 3.760 (US$ 814,91) per ton in the midday.

Head of Vegetable Oil Research of Sunvin Group in di Mumbai, Anilkumar Bagani predicted that CPO would be getting cheaper to trade because vegetable oil contract also gets lower in China exchange and the weak performance of CPO production in Malaysia in December 2023.

“Though the lower production limited the cheaper CPO,” Bagani said, as quoted from Reuters.

According to Malaysian Palm Oil Association, CPO production in the country decreased 8,59% on 1 - 20 December, while Kay Hian of UOB predicted, CPO production decreased 7% to 11%.

Soyoil contract price at Dalian with the code DBYcv1 decreased 0,39%, CPO contract price with the code DCPcv1 also decreased 0,33%. Soyoil price at Chicago Board of Trade BOcv1 did too 0,27%.

CPO has something to do with other vegetable oil price because they compete to get part in vegetable oil trade globally. (T2)