KUALA LUMPUR (July 6): Malaysian crude palm oil (CPO) prices slumped more than RM400 to below RM4,000 a tonne on Wednesday (July 6) amid a confluence of factors including a sharp overnight drop in crude oil prices and anticipation of Indonesia exporting more CPO after the nation removed its CPO export ban on May 23, 2022.

The removal of Indonesia's three-week CPO export ban, which was implemented to tame soaring prices of domestic cooking oil, has led to expectation of higher CPO inventory in Malaysia.

Global CPO prices also track crude oil prices as cheaper crude oil leads to anticipation of less demand for CPO to produce biodiesel.

At 11:28am on Wednesday, Malaysian CPO price for August 2022 fell RM415 to RM3,778 a tonne while the price for November 2022 CPO dropped RM396 to RM3,805.

At 11:29am, CPO price for July 2022 was down RM309 at RM3,890 a tonne.

https://www.theedgemarkets.com/article/cpo-prices-slump-below-rm4000tonne