Malaysian Stocks Rise, but CPO Prices Are Able to Slightly Strengthen

The price of Malaysian Crude Palm Oil (CPO) rose slightly until the afternoon trading session today after being depressed for the last few days

the price of CPO contracts for August delivery on the Malaysia Derivatives Exchange rose 23 ringgit or rose 0.6% to RM 3,894/ton. Yesterday the price of vegetable oil closed at the lowest level in the past month. In accordance with analysts' estimates, palm oil stocks in Malaysia have increased. However, the increase was not as large as the consensus forecast. Data from the Malaysian Palm Oil Board (MPOB) showed that the neighboring country's palm oil inventories at the end of May rose 1.5% from the previous month to 1.57 million tons. The increase was caused by increased production and weak exports. CPO production rose 2.84% over the previous month to 1.57 million tonnes while exports fell 6% on a monthly basis to 1.27 million tonnes. Weakening exports is a natural thing considering India as the world's largest importer of palm oil has experienced a spike in Covid-19 cases, which has forced Bollywood to re-implement a strict lockdown. In India, palm oil is mostly used for consumption. However, it is not households that are the main consumers. This vegetable oil is more widely used in the hotel, restaurant and catering (horeka) sector. Lockdown aims to limit the movement of people so that the hospitality sector is clearly one of the most affected. Palm oil consumption has decreased. But along with the decline in infection cases, India is gradually easing its restrictions. There is hope that demand will gradually improve. It's just that scientists keep warning that Covid-19 cases in India could increase again. Based on estimates by scientists India has the potential to get a third wave of attacks later this year.

|•SOURCE•| Image :BORNEO NEWS |

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