Jakarta, CNBC Indonesia- The price of futures crude palm oil (CPO) fell 0.67% to US $ 558.94 (2,276 ringgit) per ton on Monday (02/11/2019), following reports of a decline in Malaysian exports along the current month.
The gloom of the global economic outlook amid the US-China winds of trade war that still blew hard pushed market players to take a sell position on the world CPO benchmark futures exchange.
Finally, citing Reuters, US President Donald Trump stated there was no aganda to meet with Chinese President Xi Jinping before March 1. The trade war of two world economic giants has the opportunity to create a flood of soybean supply, and also CPO.
More than half of US soybean exports are bought by China. In 2017 alone the volume of Uncle Sam's soybean exports to China reached 31 million tons. The price of soybean oil which is a palm oil substitute product collapsed on the world market today.
Previously, the US Department of Agriculture estimated that world soybean consumption would grow 9% to 106.72 million tons. However, the volume of trade in US soybeans actually thinned following the reciprocal rates imposed by China on US products.
Negative sentiment related to the global economic outlook made CPO prices swing. After being strong at the end of last week, this morning the price of CPO futures was depressed.
According to global supply chain chain consulting firm Intertek Testing Services, Malaysia's exports reached 393,353 tons during the first 10 days of this month. This figure is calculated to decrease compared to the same period last month of 451,845 tons.
The neighboring country is the second largest CPO producer after Indonesia. The decline in their exports indicates a weakening world demand for palm oil on a monthly basis.
(Translated with Google Translate from https://www.cnbcindonesia.com/market/20190211104934-17-54751/hargacpo-menciut-menyusul-turunnya-ekspor-malaysia)
-- CNBC Indonesia
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Founder of i2Matrix. A market strategist, private trader and sought-after financial speaker and trainer in the Asian Region, Benny Lee has coached hundreds of professional and retails traders and investors in Malaysia, Singapore, Hong Kong, Thailand, Vietnam, Pakistan for more than 13 years. His passion in trading and chart analysis leads him to develop trading strategies that have helped him and many others to trade and invest successfully in the financial markets.
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