1NEWS – The price of crude palm oil (CPO) recorded a decline at the end of trading, Tuesday (10/5).
The decline was the impact of soaring CPO inventories in the April 2022 period.
Palm oil contracts for July delivery on the Bursa Malaysia Derivatives Exchange fell MYR 97, or 1.51 percent, to MYR 6,312 (USD 1,441.10 per tonne), the lowest since April 25, 2022.
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“Prices fell along with soybeans. Equity and energy markets fell sharply so most commodities fell,” said a Kuala Lumpur-based trader.
The decline was capped by a Reuters report on a proposal from Malaysia’s agriculture ministry to cut taxes on palm oil exports.
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Malaysia’s policy in order to fill the shortage of global vegetable oil supply.
Not only that, Malaysia also limits the mandatory 30 percent biodiesel (B30).
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In this way, the supply of palm oil to the B30 program is diverted to supply the global and domestic food industry.