CPO PRICE DEC. 8: Oil slides, CPO corrects by 1 percent

CPO futures for February 2016, the most active contract on Bursa Malaysia, opened down 1.31% to RM2,404 or IDR 7.83 million per ton.
The commodity was traded at the level of RM2,395–RM2,411 per ton in the early trade. At 10:29 West Indonesia Time, CPO price fell 1.15% to RM2,408 per ton.
CPO price corrected after it increased 2.96% to RM2,436 per ton yesterday, the highest price since 29 September 2015 driven by the soaring soybean oil price.
However, a sharp decline in oil price has triggered sell-offs in the commodity market. Brent oil fell 5.28% to USD 40.73 per barrel yesterday after OPEC declared that the quota of 30 million barrels per day production would not be executed until the meeting in June 2016.
Crude oil is CPO’s mixture material in bioethanol fuel production. The high crude oil price makes the competitiveness of plant-based fuel lower.
CPO Price Movement for February 2015 Futures Contract



Date
Level
Change


8/12/2015(at 10:29 West Indonesia Time)
2.408
-1.15%



7/12/2015


2.436


+2.96%




4/12/2015


2.366


+0.08%




3/12/2015


2.364


+1.42%




2/12/2015


2.331


-0.34%




Source: Bloomberghttp://www.bumn.go.id/ptpn5/berita/15329/HARGA.CPO.8.DESEMBER:.Minyak.Jatuh,.CPO.Terkoreksi.1.persen