CPO PRICE 13 JANUARY: Palm Oil Finally Strengthens, Market Starts to Respond to Stock Conditions

Earlier, CPO futures contracts for March 2016, the most active contracts on the Bursa Malaysia, the CPO price opened weakening 0.04 percent at 2,381 ringgit per ton.

This is in line with a 14 percent increase in China's soybean oil imports, reaching 81.69 million tons in 2015. China is the second largest importing country after Thailand.

CPO was traded higher at the time when most of the global stock and commodity markets were in the red zone, due to concerns over the slowing Chinese economy.

Brent oil prices also rose 1.20 percent to US$31.23 / barrel this afternoon.

Earlier, as quoted by Bloomberg, Market Strategist at Jupiter Securities Sdn. Benny Lee in Kuala Lumpur said that production was quite affected, so that supply is likely to fall further in this quarter.

“Decreasing stock even pushed prices to touch 2,600 ringgits over the next month,” said Lee.

Full-year production in Malaysia grew to a record 19.96 million in 2015 from 19.67 million tons last year, as shown by the MPOB website.