Speculation is driving the price of crude palm oil (CPO), which can be used for biofuels higher, as the price of crude oil is now hovering above US$50 per barrel.
Crude oil, according to Bloomberg, is set for a fifth week of advances. CPO rose RM45 to settle at RM2,030 per tonne Monday.
CPO prices have gone up despite expectations that palm oil exports could be lower in the first 20 days of March compared to the same period in February.
This has come about due to a farmers’ strike in Argentina that is threatening soybean exports and the delay by India of a previously announced removal of a 20% import duty on soybean oil.
A palm oil trader told that CPO price at RM2,100 was just speculative trading due to the rise in the price of crude oil.
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