Malaysia CPO Price Update News

Malaysia CPO Price Update News

The price of CPO in Malaysia commodity stock trading on Friday afternoon (19/02)observed rises. Rising prices of CPO this afternoon triggered a weakening Ringgit  against the u.s. dollar.

During this tracked the u.s. dollar strengthened against the Ringgit. Observed pairs us dollar-Malaysia Ringgit rises 0.82% on 4.2171. The weakening of the Ringgit is stillweak economic growth affected Malaysia.

Malaysia's economic growth which has continued to decline since the first quarter by 2015, again weakened for the fourth quarter of the 2015 period as reported to the Department of statistics Malaysia Thursday (18/02) to GDP quarterly level. The fall inGDP last quarter by 2015 is a decrease for the fourth consecutive quarter and the growth rate was the worst in the last 10 quarters.

Malaysia gross domestic product rise 4.5 percent on an annual basis in the fourth quarter of last year, much slower than the expansion of 4.7 per cent on the previous quarter. In addition, raihan-2015 the Q4 GDP make still far below expectations of a rise in the growth of 4.8 percent.

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 prices May 2016 which is the most active contract of 19 ringgit strengthened and was trading at position 2600 ringgit per tonne.

We estimate that the price movement of CPO futures on the next trade potentially strengthened by the weakening of the Ringgit with Malaysia's economic growthslowed.

The price of CPO futures contract April 2016 Malaysia commodity exchange can potentially test the Resistance level at position 2650 2700 ringgit and ringgit. While the level of Support that would be tested if the price drop is on the position of 2500 2550 ringgit and ringgit.