# Cautious Economies May Cause CPO Price To Dive | Sarawak Tribune

> 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.

- Date: 2020-05-02 · published 2020-05-02T12:00:00.000Z
- Category: market · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/53242-cautious-economies-may-cause-cpo-price-to-dive-sarawak-tribune
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Expected weakness in biodiesel and food demand points to continued downside for palm oil, a key competitor in vegetable oil markets.

## Read by commodity

- SBO: bearish ▼
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2020-05-05 | 5 | -10.4% | -3.6 | 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. |

## Sources

- sarawaktribune.com: https://www.sarawaktribune.com/cautious-economies-may-cause-cpo-price-to-dive/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.