When you simulate price risk management using a simple decision-making model, it has a negligible impact on the average price that a producer receives over a couple of years, or that an end user would pay on average during a multi-year period.
Most commodity futures markets exhibit what can be described as a whiplash effect. At times, the price for a nearby futures contract is lower than that of further-away months, at other times, the nearby contracts trade at higher prices than the further-away months, and in yet other instances, the forward price curve has the shape of a lopsided smile.
The COFR crude oil contract closed last week's fluctuations with a slight increase of 0.83% to Rp 1,045,600 per barrel. The narrow movement of crude oil last week occurred on the back of a tug of war of positive and negative sentiment absorbed by the market which is very sensitive to the stability of global oil supply and demand levels.
Corn has become a part of our lifestyle. Watching a movie is incomplete without popcorn. Healthy breakfast? Cornflakes are the main choice of cereal. Family gathering in Puncak is best accompanied by warm roasted corn. Afternoon tea, delicious while snacking. Crispy Corn Fritters? That's enough, don't think about it anymore.
As Indonesia's staple food, price fluctuations will usually be an indicator for the community about the economic situation and national agricultural performance. For example, when the price of rice rises along with the long dry season (which destroys the farmers' rice)
The crude palm oil (CPO) contract closed last week with a weekly appreciation of 2.28% to the level of Rp 14,145,- per kg. The sentiment around the CPO market, which tends to be responded negatively by the market, has in fact provided its own positive catalyst for prices. The political turmoil from the main producing country Malaysia, as well as the chaos related to COVID that hit the two main CPO producing countries, namely Indonesia and Malaysia, are the headlines that need to be underlined.