global.gerbangindonesia.org – Chaotic! Crude Palm Oil (CPO) prices, sinking.
The price of crude palm oil (CPO) fell in morning trading towards noon today. Analysts say that CPO prices have started to reverse the trend after a long period of strengthening.
On Wednesday (16/2/2022) at 08:46 WIB, the price of CPO on the Malaysia Exchange was recorded at MYR 5,403/ton, a sharp decline of 4.49%.
In the future, what are the prospects for CPO prices? Can the upward trend continue or even recede? Wang Tao, Reuters Commodity Analyst, estimates that today’s CPO price could drop to MYR 5,217/ton with the support point at MYR 5,359/ton. The uptrend from MYR 4.010/ton may have reversed. A drop to MYR 5,345/ton could confirm a break below MYR 5,359/ton.
On the daily chart, the CPO price repeatedly failed to break the resistance point at MYR 5,821/ton. So, there is a projected CPO price to fall today.
Fundamentally, the Government of India has raised the base price for imports of palm oil, soybeans, gold and silver due to soaring prices in overseas markets. India revises the base price for imports of edible oil, gold and silver every two weeks and these prices are used to calculate the amount of tax that the importer has to pay.
Yesterday, India announced that it would reduce the import tax on crude palm oil to 5% from 7.5% starting on February 12. It aims to provide further relief to consumers and guard against further increases in vegetable oil prices in India as CPO prices spiked yesterday.
In addition, the policy is to extend the basic zero percent import duty on crude palm oil, crude soybean oil and sunflower oil until 30 September 2022. However, the import duty rate for refined palm oil is 12.5%, refined soybean oil and flower oil. processed sun by 17.5%.
This policy can be a positive sentiment for CPO producers from Indonesia and Malaysia, because India is the world’s largest importing country. This is expected to have a positive impact on the Indonesian economy as it increases export revenues.
According to independent inspection company AmSpec Agri Malaysia, exports of Malaysian palm oil products for the period February 1-15 rose 23.6 percent to 496,983 tons from 402,243 tons. .