BLEACH PALM OIL PRICES ON JAN 17: El Nino Effect Predicted To Continue To Suppress Production, Crude Palm Oil Continues To Strengthen
April 2017 CPO futures contract, the most active contract on Bursa Malaysia, opened today with a gain of 0.10% or 3 points at the position of 3,113 ringgit per ton. Its movement then rose by 0.51% or 16 points to 3,126 ringgit per ton at 10.06 WIB. According to Malaysian plantation consultant Ganling, as reported by Bloomberg today, the effect of El Nino last year on palm oil production in Malaysia and Indonesia, the two largest producers in the world, will continue until the first half of 2017. "Production will fall again in the first quarter in Malaysia and between the second and third quarters in Indonesia. The continued tight supply will limit the rise in stock so as to support the price at least until the first quarter," Ganling's director, Ling Ah Hong, said. On trading Monday (16/1), the CPO price closed with a gain of 0.88% or 27 points at 3,110 ringgit per ton along with the weakening performance of the ringgit. The rupiah's exchange rate this morning again weakened slightly by 0.03% to 4.4680 per US dollar at 09.46 WIB, after it had strengthened to a position of 4.4657. CPO Price Movement for April 2017 Contract
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