22 Mar 2016
June 2016 CPO futures, the most actively traded contract on Bursa Malaysia, opened 0.22% lower at 2,673 ringgit per ton.
The commodity then immediately turned higher by 0.41% to 2,690 ringgit or Rp 8.69 million per ton at 10:14 Indonesia Western Time. CPO has continued to strengthen after rising 0.94% last weekend to 2,679 ringgits, the highest price for the most active contract since April 2014.
The rally in CPO throughout last week was triggered by higher crude oil prices. Higher oil prices can support the Indonesian biodiesel program and boost CPO consumption at home.
WTI crude oil prices were down 1.12% to US$ 39 per barrel at 10:18 Indonesia Western Time, correcting after climbing above US$ 40 per barrel last Thursday. The oil price has risen almost 40% since reaching a 12-year low in mid-February.
The movement of the ringgit on the forex market has provided an additional boost to the movement of CPO prices. The ringgit had dropped 0.5% to 4.0738 per US dollar at 10.35 WIB on the spot market after three consecutive days of appreciation.
Price movement of June 2016 CPO contracts
Date | Level | Change |
| 21/3/2016(10.14 WIB) | 2.690 | +0.41% |
18/3/2016 | 2.679 | +0.94% |
17/3/2016 | 2.654 | +1.65% |
16/3/2016 | 2.611 | +0.04% |
15/3/2016 | 2.610 | +0.81% |
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