# Likely drag on CPO prices | The Star

> Malaysia reinstated a 5% crude palm oil export tax for May after a four-month suspension, applying to prices above RM2,250 per tonne. Analysts expect the tax and rising supply to weigh on CPO prices in the coming months, with the July contract trading near RM2,345.

- Date: 2018-05-06 · published 2018-05-06T12:00:00.000Z
- Category: policy · region Malaysia · magnitude medium
- Page: https://feedsoft.ai/events/64886-likely-drag-on-cpo-prices-the-star
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

A higher export tax discourages Malaysian exports and adds to stock build-up, which is bearish for palm oil prices and supportive of competing vegetable oil substitutes.

## Read by commodity

- SBO: neutral
- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2026-01-01 | [The Ministry of Trade Says the Demand Decline Caused CPO Prices to Weaken](https://feedsoft.ai/events/21162-the-ministry-of-trade-says-the-demand-decline-caused-cpo-prices-to-weaken.md) | +0.6% | +3.1% |
| PALMOIL | 2019-05-23 | [Palm oil extends losses on EU rule, weaker soyoil \| The Star](https://feedsoft.ai/events/59163-palm-oil-extends-losses-on-eu-rule-weaker-soyoil-the-star.md) | -0.1% | -0.9% |
| PALMOIL | 2017-12-08 | [Palm oil beat down vegetable oil prices  : The Daily Digest](https://feedsoft.ai/events/12715-palm-oil-beat-down-vegetable-oil-prices-the-daily-digest.md) | -1.3% | +6.4% |
| PALMOIL | 2018-12-04 | [Indonesia relaxes palm oil levy rules \| The Star](https://feedsoft.ai/events/61467-indonesia-relaxes-palm-oil-levy-rules-the-star.md) | +0.7% | +8.4% |
| PALMOIL | 2020-03-16 | [Malaysia to cut CPO export tax to 5% in April following lower prices in Q1  : The Daily Digest](https://feedsoft.ai/events/54011-malaysia-to-cut-cpo-export-tax-to-5-in-april-following-lower-prices-in-q1-the.md) | -1.5% | -4.6% |
| SBO | 2018-11-26 | [Malaysian palm oil price in biggest fall in 21 months as Indonesia axes export levy \| The Star](https://feedsoft.ai/events/61908-malaysian-palm-oil-price-in-biggest-fall-in-21-months-as-indonesia-axes-export.md) | +0.6% | +0.3% |
| SBO | 2016-08-14 | [Prices for rapeseed, soybean and sunflower oil have converged: UFOP  : The Daily Digest](https://feedsoft.ai/events/11871-prices-for-rapeseed-soybean-and-sunflower-oil-have-converged-ufop-the-daily.md) | +7.0% | +1.3% |
| SBO | 2026-03-25 | [ICE Canada Weekly: More behind canola, soyoil than crude oil prices - Grainews](https://feedsoft.ai/events/20290-ice-canada-weekly-more-behind-canola-soyoil-than-crude-oil-prices-grainews.md) | +3.8% | +5.7% |

## Sources

- thestar.com.my: https://www.thestar.com.my/business/business-news/2018/05/07/likely-drag-on-cpo-prices/

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