18 Jan 2016
The increase in CPO price is supported by the increase of export of CPO in Malaysia. Intertek report showed that the export of CPO in Malaysia during the period of January 1-15, 2016 rose 4.3% to 486,846 compared to the same period last month.
Commodity analyst, Deddy Yusuf Siregar, said that the increase of export of CPO in Malaysia gives positive sentiment to the price of CPO. The thing that is inhibiting CPO now is the movement of the price of world’s crude oil that still tends to be bearish. “If the price of crude oil is suppressed continuously, CPO will find it difficult to increase,” he said.
However, the price of CPO can survive since there is a support from El Nino Storm. Dry weather due to El Nino is predicted to affect the production of CPO.
Bayu Khrisnamurti, President Director of CPO Fund Public Service Body, once said that Indonesia’s CPO output will stagnate or decrease by around 3% to 30.6 million tons to 32.3 million tons in 2016.
Then, La Nina storm is also predicted to approach the region of Southeast Asia in the second semester this year. If El Nino can cause dry weather, then La Nina can bring flood, which results in the delay in harvesting CPO. The effect will still inhibit the production.
Dedy said that if the production is lower than the demand, then the stockpile of CPO will eventually decrease or even run out. The hope is, this could encourage the increase in the price of CPO.
Dedy predicted that the impact of El Nino will start to be felt in the first semester this year. “It is possible that the price of CPO will go up to RM 2,400 per metric ton in the first semester,” he added.
http://jambi.tribunnews.com/2016/01/18/kenaikan-ekspor-malaysia-mengangkat-harga-cpo
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