Dec. 6 CPO Prices: Malaysia Inventory to Rise to Record, Palm Oil Declines

Crude palm oil (CPO) futures for February 2017, the most active contract on Bursa Malaysia, opened 0.54% or 17 points lower at RM3,118 a tonne today.
It further eased 0.67% or 21 points to RM3,114 a tonne at 10.11am.
Traders and analysts polled by Bloomberg project Malaysia’s palm oil inventories rose 8.3% to 1.7 million metric tonnes in November from a month earlier.
Malaysia’s palm oil stockpiles are set to expand to a four-month high as a slump in exports outweighed the effect of smaller output in the world’s second-largest producer.
Production of crude palm oil fell 3% to 1.63 million tonnes, while exports dropped 10% to 1.28 million tonnes, the weakest since June. Official Malaysian palm oil data is due to be released on Dec 14.
Yesterday (Dec 5, 2016), the CPO price closed up 1.92% or 59 points to RM3,135 per tonne on Bursa Malaysia despite the stronger ringgit against the US dollar.
The ringgit was quoted 0.10% higher at 4.4440 to the US dollar at 9.59am today.
CPO Futures Contract for February 2017




Date


Level


Change



Dec 6, 2016(10.11am)
3,114
-0.67%



Dec 5, 2016


3,135


+1.92%




Dec 2, 2016


3,076


-0.10%




Dec 1, 2016


3,079


+0.20%




Nov 30, 2016


3,073


+0.75%




Source: Bloomberg