TEMPO.CO, Jakarta-CPO prices rebound in Bursa Malaysia on Monday morning, October 5, after Indonesia and Malaysia agreed on the establishment of a council of palm oil producing countries.
CPO futures contracts for December 2015, the most active contract in Bursa Malaysia, opened higher 0.75 percent to 2,405 ringgit per tonne.
The commodity this morning moved between 2,399 and 2,423 ringgit per tonne. At 9:57 am, CPO traded higher by 1.26 percent to 2,417 ringgit or Rp7,97 million per ton.
Coordinating Minister for Maritime and Resources, Rizal Ramli said that Indonesia and Malaysia agreed to establish a council CPO producing countries. His remarks came after Rizal met the Minister of Plantation Industries and Commodities Malaysia Douglas Unggah Embas.
The council planned to serve as a forum for price stabilization as well as research and technology development work.
Both countries, which produce around 85 percent of global CPO production, invites other CPO producing countries to join the council.
CPO continued a positive trend after its increase last week. The weak ringgit and production disruptions pushed CPO prices to increase 11.36 percent last week.