Crude Palm Oil (CPO) or also called palm oil are products traded on commodity markets. This commodity is the result of a common resource is processed into a variety of derivative products, either in the form of consumer goods and industrial raw materials. Indonesia is the world’s biggest palm oil, followed by Malaysia. However, Malaysia introduced the first Euro-denominated CPO futures product than Indonesia.
Currently, Indonesia has had exchanges that trade palm oil futures contract, ie Indonesia Commodity and Derivatives Exchange (ICDX) or the Commodity and Derivatives Exchange Indonesia. Product palm oil contract KPOc3 have commercial code, according to the Reuters version. While in ICDX own, CPO trading code is CPOTR.
One of the reasons that make a decent CPO futures traded on the stock is the high physical demand for these commodities. This is understandable considering the use of palm oil in a variety of industries, both household products or food. In recent time, the CPO price movements tend to follow the direction of the volatile commodities such as crude oil and its substitutes.
Here are some of the factors that influence the price movement of CPO:
Climatology factors: weather factors significantly impact the sustainability of palm oil prices as closely linked to the principle of supply and demand. Bad weather factors will push up prices, given the volume of palm oil production so threatened. At the same time, the current demand continues to run normally. Correlation: Negative The worse the weather, the prices tend to be higher.
Crude Oil: Crude oil price rise will generally give a boost to the CPO price increase. The reason is because the process of commodity production and distribution of oil is highly dependent on the availability of fuel. The release of additional costs due to rising oil prices will be charged on the selling price of CPO. Correlation: Positive higher crude oil prices in the market, the higher the selling price of CPO.
Commodity Substitution: increase in CPO prices which are too high can make investors turn to commodities substitutes, such as corn oil and soybean. Automatically, the price of substitute commodities will also be lifted. If this happens, the CPO can be more expensive than ever before. Correlation: Positive higher CPO prices, the price of other commodities also surged belt. And vice versa.
Source
CPO (Crude Palm Oil) Tarding
Currently, Indonesia has had exchanges that trade palm oil futures contract, ie Indonesia Commodity and Derivatives Exchange (ICDX) or the Commodity and Derivatives Exchange Indonesia. Product palm oil contract KPOc3 have commercial code, according to the Reuters version. While in ICDX own, CPO trading code is CPOTR.
One of the reasons that make a decent CPO futures traded on the stock is the high physical demand for these commodities. This is understandable considering the use of palm oil in a variety of industries, both household products or food. In recent time, the CPO price movements tend to follow the direction of the volatile commodities such as crude oil and its substitutes.
Here are some of the factors that influence the price movement of CPO:
Climatology factors: weather factors significantly impact the sustainability of palm oil prices as closely linked to the principle of supply and demand. Bad weather factors will push up prices, given the volume of palm oil production so threatened. At the same time, the current demand continues to run normally. Correlation: Negative The worse the weather, the prices tend to be higher.
Crude Oil: Crude oil price rise will generally give a boost to the CPO price increase. The reason is because the process of commodity production and distribution of oil is highly dependent on the availability of fuel. The release of additional costs due to rising oil prices will be charged on the selling price of CPO. Correlation: Positive higher crude oil prices in the market, the higher the selling price of CPO.
Commodity Substitution: increase in CPO prices which are too high can make investors turn to commodities substitutes, such as corn oil and soybean. Automatically, the price of substitute commodities will also be lifted. If this happens, the CPO can be more expensive than ever before. Correlation: Positive higher CPO prices, the price of other commodities also surged belt. And vice versa.
Source
CPO (Crude Palm Oil) Tarding
