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Veteran analyst Dorab Mistry said crude palm oil is trading near RM2,000 per tonne, and he expects prices to gravitate toward production costs of RM1,500 to RM1,800. He said the pandemic has destroyed biodiesel demand that Indonesia and Malaysia had planned for this year.
Consumption may not return to normal while the illness persists.
Expected weakness in biodiesel and food demand points to continued downside for palm oil, a key competitor in vegetable oil markets.
sarawaktribune.comBernamaMay 2, 2020Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
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.
Dorab Mistry's call for CPO to fall toward RM1,500-1,800 on destroyed biodiesel demand and weak consumption fed bearish sentiment at the start of the window.
