Bisnis.com, JAKARTA – Concerns over the abundant palm oil supply in the importing country of India and the strengthening of the Malaysian ringgit managed to reduce the price of these commodities.
On Wednesday (2/20/2019), the price of palm oil in the May 2019 contract on the Malaysian Derivatives Exchange opened weakly at the level of 2,257 ringgit per ton, weakening 0.13% or 3.00 points.
At the same time continue the weakening at the close of trading the previous day (02/19/2019), at 1.14% or 26.00 points to 2,260 ringgit per ton.
Chandran Sinnasamy, a futures broker at CIMB, Kuala Lumpur, said that traders were now monitoring export data as a clue to the demand for Malaysia’s mainstay commodities.
“There is a need to [see] actual demand in the next three months or until next June to cut inventory in Malaysia to 2.4 million tons,” he was quoted as saying by Bloomberg on Wednesday (02/20/2019).
He added, Malaysia’s crude palm oil (CPO) reserves reached 3 million tons at the end of January.
In addition, he continued, the price of palm oil was also suppressed by speculation that abundant stocks in India could limit imports. “In addition, losses in the Dalian [China] vegetable oil market and strong ringgit weigh on the commodity,” he said.