Higher biodiesel mandates seen positive for CPO

The palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was 0.5 percent higher at the close of trade, settling at 2,629 ringgit ($657) per tonne

PETALING JAYA: Higher biodiesel mandates will provide the floor for the price of crude palm oil (CPO), as the commodity move into peak production period, said analysts.

The upgrading from B7 to B10 biodiesel for the transportation sector effective June 2, together with introduction of B7 usage to the industrial sector, is expected to reduce Malaysia’s palm oil stockpile.