COMMODITY (B-Trams):The downward trend in the prices of crude palm oil (CPO) continues, the decline in vegetable oil prices was even worse, dropping for this consecutive week.
CPO prices on the Malaysian Derivatives exchange fell by more than 10% this week to 3,512 ringgit (RM) per ton or around US$ 800 per ton.
However, prices are being pushed down by the high levels of stocks in Malaysia and Indonesia. But demand from asian countries like Pakistan, India, and China, which is buying for the Muslim holiday season, will support prices,”
According to Analyst Abdul Hameed, the edible oil market palm oil market may trade below 3500-3400 and it should be good buying opportunity for near term.
The weekly decline was the biggest in the last four months, as well as bringing CPO soybean and sunflower to the cheapest level in the last five months. This week CPO fell by 6% and 4.2% respectively.
While the prices were dragged down by other rival edible oils such as soybean oil and sunflower seeds. Understandably, vegetable oil prices compete with each other, so when one goes down, the others will follow. Because if it doesn’t go down, its market share is threatened to decrease.