Touch CPO Highest Price

JAKARTA: The price of crude palm oil (crude palm oil / CPO) rose to the highest level in the last 2 years triggered decline in global vegetable oil supply reached its lowest in 17 years.

Speculation United States will reduce its production forecast this month also helped push up the price. CPO contract delivery in January, most-active contract traded on the Commodity Exchange and Indonesian Derivatives (BKDI), rose 105 points to Rp8.940 per kg.

On commodity exchanges Malaysia, crude palm oil prices also rose 34 points or 1.1% to 3095 ringgit or equivalent to U.S. $ 1,000 per tonne, the highest level since July 28, 2008.

U.S. Department of Agriculture (USDA) noted soybean oil and palm oil inventories down 12% next year triggered by rising consumption in China and India by 11%.

Soybean oil production is also predicted to decline, so will raise the price of soybean oil and palm oil, which is a commodity substitution.

Malaysian palm oil exports, the world's second largest producer after Indonesia, carrying down 8.5% to 1.35 million tons during October from 1.48 million tons in September, according to data from independent market surveyor Intertek.

By        : Elisabeth S. Berliana