China-US Trade War and Declining Export Volume Erode Malaysian CPO Prices

"Today, the price of Malaysia CPO moved in the range of RM2,250-2,265 per ton compared to yesterday's range of RM2,238-2,276 per ton," said Arie Nurhadi, PT Monex Investindo Futures research analyst, in Jakarta, Friday (22/06/2018).Arie stated that the decline in the price of Malaysia CPO on Thursday was the fourth consecutive daily decline. Meanwhile, the price of RM2,238 per ton is the lowest price since July 2016."The decline was caused by negative sentiment that emerged along with the market's anxiety regarding the trade war between China and the United States (US). In addition, the decline in exports in June 2018 also contributed to the price decline," said Arie.Arie disclosed that the price of CPO for September 2018 delivery contracts on the Malaysia Derivatives Exchange had fallen 0.5% to RM2,251 per ton or the equivalent of US$60.79 per ton during the close of trading on Thursday.According to a release published by Societe Generale de Surveillance (SGS) and AmSpec Agri Malaysia (AmSpec) this week, exports of CPO from Malaysia during 20 days throughout June 2018 have fallen 6.37% and 10.015%, respectively, compared to the same period in May 2018."The data on the volume of CPO exports from Malaysia published by SGS and AmSpec this week have continued to impact the selling price of CPO from Malaysia in various commodity markets in the neighboring country," Arie concluded.

Link: http://www.industry.co.id/read/36490/perang-dagang-cina-as-dan-penurunan-volume-ekspor-gerus-harga-cpo-malaysia