Jakarta. Crude palm oil (CPO) prices are expected to strengthen this week as major producing countries, particularly Indonesia and Malaysia, prepare to welcome the Ramadan season.

According to Indonesia Commodity and Derivatives Exchange (ICDX) analyst Girta Yoga, demand is expected to surge in the lead-up to Ramadan, potentially propelling CPO prices higher in both domestic and global markets. 

The projected range for CPO prices is between 3,900 ($816.33) and 3,925 Malaysian ringgit per ton, with a support level expected within the range of 3,800 to 3,775 Malaysian ringgit per ton. According to tradingeconomics.com, on Monday, the CPO price saw a 0.2 percent increase, reaching 3.862 Malaysian ringgit compared to the previous closing.

"CPO prices experienced a 1.24 percent decline last week, but throughout February, they saw an increase of 1.41 percent. Overall, from the beginning of the year until now, CPO prices have risen 4.29 percent," Yoga said on Monday.

In the domestic market, the increase is anticipated to be fueled by the demand for derivative products of CPO, such as cooking oil, margarine, and similar items.

Meanwhile, on the global stage, there is a potential for a decrease in supply from major exporting countries due to their prioritization of meeting domestic needs first.

However, Yoga predicts that the strengthening of CPO prices this week is likely to be limited. This is attributed to the condition of the vegetable oil market experiencing an oversupply, particularly in competition with soybean oil from major producing countries such as Brazil, the United States, and Argentina.