Posted by MuttsInvestor > 2021-07-28 21:25 | Report Abuse

"" What is the direction for CPO price? Drawing hints from the CPO forward curve (Exhibit 2) in backwardation, the direction continues to head south with near-term price range of c.RM3,500-3,700/MT. We concur with the direction, especially as rising inventory in 2H 2021 should continue to weigh on CPO prices."""....... KENANGA ...... Please resign your position as CPO analyse. Current Month Price(July 2021)for CPO is Averaging Rm4,000/- !!!!!!! And if you KNOW Futures Options ..... "Long" Position is 10times of "Short" position for Aug till Oct 2021. !!!In simple language ... Prices of CPO is going UP !!! From Rm4,000/!!!!!

Posted by calvintaneng > 2021-07-28 21:37 | Report Abuse

Correct!

Fcpo August 21 now above Rm4500 per Metric Ton

This will further be supported by

1) USA pivoting into Biodisel which supports Soyoil/corn oil which will
now lift up Cpo prices. This is a long term structural change as Phillips 66 turn from fossil fuel refining to Biodisel refining

See

https://www.spglobal.com/platts/en/market-insights/latest-news/oil/043021-phillips-66-starts-up-first-renewable-diesel-unit-at-rodeo-refinery


2) Current drought in USA will deplete soy and corn

3) Flood in Henan already impacted up to 2.4 Million acres of agri products

There is a possibility Fcpo will rise above Rm5,000 a ton