The Malaysian government has lowered the tax on crude palm oil exports in April to 5% from 6% in March. This move came after the reference price for Malaysian palm oil in April was calculated at MR 2,631.07/mt, down from MR 2,982/63/mt for March. The export tax of 5% applies to a CPO price range of MR 2,551-2,700/mt, while 6% is applicable on a price range of MR 2,851-3,000/mt.
If you compared with UMWOG chart it actually not falling straight away from 0.60 to 0.40 in 1 day. If has took 1 month to fall each 10 cents so that to sell out stock in hand. It is very clear the motive is not the same.
tell you all... yesterday i bought some at 0.555 but sold back all @ 0.585... current price at 0.585~0.590 is the best price for the trader ... the trader can sell 0.59 with gain and buy 0.585 with gain too..