Palm Oil Prices Ready to Record Again! Thank you Indonesian… – Nach Welt

Jakarta, CNBC Indonesia – Crude Palm Oil Prices (Crude Palm Oil/CPO) is predicted to strengthen again this week. In fact, last week CPO prices touched the highest level since 1980. What’s wrong?

Last week, CPO price closed at MYR 5,633/ton, up 3.47% on a daily basis and recorded an increase of 61.26% on an annual basis (yoy). According to Refinitiv, this week’s CPO price could test the point resistance at MYR 5,676/Tonne und can rise to the target price in the range of MYR 5,749-5,794/Tonne.

On Friday (28.1.2022), CPO price has broken above the point resistance which confirms the uptrend. The increase is predicted to continue to rise until this week. Meanwhile, the Malaysian trading market for this commodity is currently on Lunar New Year holiday today, so it will reopen on Wednesday (2.2.2022).

Meanwhile, if the CPO price breaks below the point support at MYR 5,608/Tonne, it could drop deeper into the MYR 5,484-5,558/Tonne range. However, analyst Reuters, predicts CPO prices will continue to rise.

The maneuver carried out by the Indonesian government regarding restrictions on palm oil exports seems to still have an impact on world CPO prices. Refers to the Reuters, Indonesia accounts for at least 59% of the world’s palm oil supply. Indonesia is also a contributor to lag energy such as nickel, coal and copper.

Number: Reuters

Asian chief economist Fred Neumann told Reuters that the Indonesian government’s move to limit energy exports sent the prices of each of these commodities soaring, raising concerns among importers of fuel, food and manufacturing materials about potential disruptions to world supplies.

Malaysian Palm Oil und Shanghai Nickel Futures Soared To All-Time Highs Last Week. This is, Due to Potential Restrictions on Supply from Indonesia.

Rising prices are likely to encourage major buyers such as India, China, Pakistan and several African countries to switch to soybean oil and sunflower oil.

Buyers in Asian countries usually rely on palm oil because of its low cost and fast delivery times, but if using soybean oil and sunflower oil they have to buy from South America from the Black Sea region. This means that although the price of soybean oil and sunflower oil is cheaper than the price of CPO, it takes longer time for delivery. In addition, the supply of sunflower oil is threatened due to tensions between Russia and Ukraine.

CNBC INDONESIEN RESEARCH TEAM

[Gambas:Video CNBC]

(aaf / aaf)

Reference-www.nach-welt.com

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