CPO Prices Increase Under Ringgit Weakening

The price of CPO in Malaysia commodity exchange in trading Wednesday afternoon(03/02) observed rises. Strengthening the price of CPO this afternoon again fuelledthe weakening Ringgit against the u.s. dollar.

During this tracked the u.s. dollar strengthened against the Ringgit. Tracked the u.s. dollar strengthened against the Ringgit, up 0.43% at 4.2338.

The weakening of the ringgit has made the price of commodities traded in thecurrency became relatively cheaper for foreign buyers and so the demand is increasing.

The price of CPO contract most active on the exchange of commodities Malaysiatoday appear to increase. Contract price April 2016 which is the most active contract rose 22 ringgit of and traded in the position of 2537 ringgit per tonne.

This evening will be released u.s. economic indicator data which are all indicateddecreased from an estimated. Both the Adp Employment Change data, the ISM NonManufacturing PMI January, the ISM Non Manufacturing Business Activity January,Markit Composite PMI Final January, Markit PMI Services Final January, everythingindicated decreased from an estimated. Poor economic data could hit the u.s. dollar.

We estimate that the price movement of CPO futures on the next trade potentiallyweakened with the strengthening of Ringgit due to the weakness of the u.s. dollar.Price movements can also be affected by global supply and demand conditions and prices of crude oil.

The price of CPO futures contract April 2016 Malaysia commodity exchange can potentially test the Support level at position 2490 ringgit and 2440 ringgit. While the Resistance level will be tested if there is decline in the position of the ringgit and ringgit 2640 2590.