22 Nov 2018
After holiday on Tuesday, crude palm oil futures have recovered by 20 points yesterday at Kuala lumpur, Malaysia. BMD CPO active third month contract price has touched the day’s high of 2,017 level but by the end of session it came close to 2,000 level and settled at 2,006 MYR/ton. CPO price has mainly increased following recovery in crude oil prices.
Apart from seasonal weakness, limited import demand from India due to oilseed harvesting season and higher stock have dragged down palm oil exports from Indonesia & Malaysia, which has kept CPO prices under pressure. As per sources, Malaysia’s palm oil exports during 1-20 November is reported to have declined by 11% at 793,497 tons.
In response to 1% rise in international market, MCX CPO active December future contract price increased by Rs.10 or 2% and settled at Rs.508.8/10 kg levels on Wednesday.
Production season in Malaysia & Indonesia is estimated to have reached at its culmination and expected to decline from November month onwards. In such a phase, any surprise in exports could slew the prices in same directions. However, we expect CPO price to remain under bear grip till its import demand from India, China improves.