06
Mar
After the record, the price of palm oil collapses! Later? Down Again...
Jakarta, CNBC Indonesia - Crude Palm Oil (CPO) commodity prices moved lower at the opening of trading this morning after touching an all-time high yesterday. What is the price projection for next week?
On Friday (14/1/2022) at 10:00 WIB, the price of CPO on the Bursa Malaysia was recorded at MYR 5,075/ton. Down 1.67% from yesterday's closing position.
Technically, the CPO price might test the support at MYR 5,094 per tonne and will open the next target to MYR 5,001/ton according to Reuters.
Yesterday's increase could be the last struggle for CPO to reach a bullish trend. As you can see, this commodity contract is very vulnerable around the resistance at MYR 5,155/ton because the five wave cycle ended bearish.
From a fundamental perspective, Ivy Ng, head of plantation research at CGS-CIMB, projects that CPO prices will remain strong in the range of MYR 4,500 to MYR 5,500 per tonne this month as palm oil supplies are likely to remain tight in the near term.
He said the first quarter is usually the low production season because Malaysia experiences heavier rainfall than usual. And in terms of human resources, there is a delay in the recruitment of foreign workers which as a result may increase the price of CPO in the near future.
"We estimate palm oil production in January to fall 12.5% (month-to-month/mtm) due to the rainy season and labor shortages. Exports fell 20 percent due to demand rationing," said Dr. Sathia Varga founder of CPO analytics in Singapore.
In the future, he also predicts that the price of CPO will increase due to the decline in CPO production in January. Plus a shorter February due to the Lunar New Year holidays.
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