05 Sep 2016
November 2016 palm oil futures, the most traded contract at the Bursa Malaysia, rose 1.50% or 39 points to 2,634 ringgit per ton at 09:53 a.m. WIB.
Earlier this morning, the palm oil contract was up 0.04% or 1 point to 2,596 ringgit per ton.
In the previous trading day (Friday, 2/9/2016), the November CPO price jumped 2.98% or 75 points to 2,595 ringgit per ton.
As quoted by Bloomberg today, Malaysia and Indonesia contribute to almost all global palm oil production, but reduced production in Malaysia is one of the factors that is pushing up prices. Increased demand in line with higher consumption in major importers such as China and India is also helping to lift prices.
The decline in production thus far in 2016, brought on by the El Nino dry spell, has spurred a rally in Malaysian CPO prices.
According to data from Malaysian Palm Oil Board, production from January-July 2016 fell 15% to 9.17 million tons (MT) compared to the same period last year.
Meanwhile, according to the “Food Outlook” released by the UN Food and Agriculture Organization (FAO) in June 2016, global palm oil production is expected to shrink for the first time in 18 years after the prolonged dry spell that hit Southeast Asia this year.
On the other hand, demand in China and India is expected to remain robust throughout the festival season during the second half of the year.
| Date | Level | Change |
| 5/9/2016(09:53 a.m. WIB) | 2,634 | +1.50% |
| 2/9/2016 | 2,595 | +2.98% |
| 1/9/2016 | 2,520 | -0.24% |
| 31/8/2016 | - | - |
| 30/8/2016 | 2,526 | +0.36% |
© Inacom. All Rights Reserved.
EN
