Malaysia Cuts Export Tax, Global Palm Oil Prices Drop

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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.

READ ALSO: CPO Stock Soars, Palm Prices Only Rise Slightly

“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.

READ ALSO: Jokowi’s policy will be short-lived, say oil palm farmers

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).

READ ALSO: RI’s Export Prohibition Makes Upheaval, Palm Prices Begin to Rise Again

In this way, the supply of palm oil to the B30 program is diverted to supply the global and domestic food industry.

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