Price Performance Indicators

CPOTR Focus:

• The CPOTR ICDX contract price 7/8 – 11/8 decreased by 1.19%.
• Malaysian Palm Oil stock in July amounted to 1.73 metric tons.
  

Market Review

CPOTR price movement decreased in a week to a level of IDR 11,805/Kg triggered by the weakening demand, especially from Europe, which increased Malaysia's CPO stocks. On the other hand, there is hope for a return to the Black Sea Agreement.

In circulating news, European CPO imports have decreased by 33% in January-July 2023 compared to the same period last year. The  decrease  in demand has made Malaysia's CPO supply reach its highest level in five months. The Malaysian Palm Oil Board (MPOB) showed Malaysia's July-end palm oil inventories increased 0.68% from the previous month to a five-month high of 1.73 million metric tonnes. Meanwhile, from the production side, it jumped 11.21% to 1.61 million tonnes, the highest since January.

Another sentiment came from, US Ambassador to the UN Linda Thomas-Greenfield said President Joe Biden's administration hoped Russia would return to the Black Sea Grain Agreement. Russia withdrew from the Black Sea Grain Initiative which again blocked food exports from Ukraine and also Several Ukrainian food ports, which export wheat, barley to sunflower oil. In addition, on 05/08 news broke that a Russian oil tanker was attacked by a Ukrainian naval drone on Saturday morning while crossing the Kerch Strait off the coast of Crimea. The attack was the second in a 24-hour period, following attacks on Russian vessels outside the Black Sea port of Novorossiysk. The tense situation in the eastern European waterway has come to a head after Kyiv's maritime agency warned on Saturday that all Russian ports would now be considered a "risk area of ​​war", in Ukraine's latest incursion around the Black Sea since Russia's exit from the Black Sea grain deal.

Market View

Indonesian and Malaysian Export Data Release

On (15/8) in the records of the Badan Pusat Statistik (BPS) submitted by Plt. Head of Amalia Adininggar Widyasanti reported that Indonesia's export value in July 2023 reached US$20.88 billion, an 18.03% drop compared to the same period in the previous year. The palm oil commodity decreased by 19.25% to US$2.28 billion. Meanwhile, in previous trading, MPOB data showed Malaysia's CPO exports increased by 15.55% to 1.35 million tons, much higher than expected.

WEEKLY ECONOMIC DATA & EVENTS CALENDAR

Source: ICDX Research