CPO PRICES FEB 11: RI supply shrinks, CPO climbs to Rp8.42 million/ton in Malaysia

April 2016 palm oil futures contract, the most active contract in Bursa Malaysia, started trading 0.43% lower at RM2, 556 per tonne.
However, CPO prices turned higher to RM2, 578 per tonne and were trading 0.31% up at RM2, 575 or Rp8.42 million per tonne at 10.27 WIB.
Sentiments on CPO price in Kuala Lumpur stems from decreased palm oil supply in Indonesia, the palm oil- producing country in the world.
Indonesia Palm Oil Producers Association data shows that palm oil export decreased by 22% to 1.7 million tonnes in January 2016 compared to the previous month, its lowest decrease in April 2014.
`Supply is very limited in a low production period and is affected by El Nino. Production will remain low until June or July. Domestic demand is increasing,` Joeliant of PT SMART Tbk (SMAR) told Bloomberg.
Production in January reached 2.23 million tonnes, down from a production of 2.43 million tonnes in December. Stockpiles also decreased from 2.9 million tonnes to 2.05 million tonnes in the same period.
The effect of El Nino is predicted to cause CPO stocks in Malaysia to drop 11% to 2.33 million tonnes, the lowest level in 6 months.
Intertek predicts that CPO export in Malaysia will drop 22.7% to 249, 835 tonnes between 1-10 February 2016 compared to that in the same period in the previous month.
April 2016 CPO Contract Price Movement



Date
Level
Change


11/2/2016(10.27 WIB)
2.575
+0.31%


10/2/2016
2.567
-0.50%


9/2/2016




8/2/2016




5/2/2016
2.580
+1.94%



Source: Bloomberghttp://market.bisnis.com/read/20160211/94/518039/harga-cpo-11-februari-pasokan-ri-menyusut-cpo-naik-ke-rp842-jutaton-di-malaysia