CPO PRICES AUG 29: Ringgit Leads Emerging Market Currency Losses, Palm Climbs

CPO futures for November 2016, the most active contract on Bursa Malaysia, rose 0.16% or 4 points to 2,556 ringgit per ton at 10.07 WIB.

Palm oil futures previously opened up 0.31% or 8 points at 2,560 ringgit per ton.

On Friday (26/8/2016), the CPO price for the November contract closed lower by 0.35% or 9 points to 2,552 ringgit per ton alongside the strengthening performance of the Malaysian ringgit.

In the meantime, the exchange rate of the ringgit against the US dollar this morning depreciated by 0.50% to 4,0367 at 10.22 WIB.

The ringgit led depreciation of emerging market currencies with the won after the dollar strengthened to its highest level following the statement from the Fed that spurred predictions of a US rate hike in the near future.

“Asian currencies started the week lower as markets priced in a higher chance of a September hike by the Fed – a significant shift from a few weeks ago when liftoff was not expected until late 2017 or early 2018,” said Khoon Goh, Australia & New Zealand Banking Group Ltd.’s head of Asia research, as reported by Bloomberg today.

CPO November 2016 Contract Price Movements