Likely drag on CPO prices

Malaysia has set a 5% tax on CPO export this month after a four-month suspension. The tax was calculated based on the palm oil reference price of RM2,409.66 per tonne for May. Any price above RM2,250 incurs a tax

PETALING JAYA: The reinstatement of the crude palm oil (CPO) export tax and concerns over rising supply will likely drag CPO prices further in the nearby months, say analysts.

Malaysia has set a 5% tax on CPO export this month after a four-month suspension. The tax was calculated based on the palm oil reference price of RM2,409.66 per tonne for May. Any price above RM2,250 incurs a tax.