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Crude palm oil closed at MYR 4,708 a tonne on Friday, down 4.1% and the lowest since June 24, while staying below the MYR 5,000 level. Prices fell after Indonesia introduced an accelerated export program, known as flush out, which pushed prices down 14.5% in the prior week.
Industry attention is on possible further government measures.
The flush-out program accelerates Indonesian exports and clears domestic stocks, adding supply to global palm markets and pressuring prices. Further policy changes could either reinforce or reverse this pressure.
cnbcindonesia.comMaesarohJul 3, 2022After 400 past bearish policy events, Palm Oil moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.1%), and +0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Explains that CPO fell after Indonesia's accelerated export (flush out) program, which pushed supply into the market and drove a sharp weekly drop to the lowest since June 24.
Prices fell 4.1% on July 1 after Indonesia's accelerated export (flush out) program added to export supply.
Describes Indonesia's accelerated export (flush out) program pushing prices down and the prior Friday's 4% drop, setting up the supply-glut momentum into the move.
