Malaysian palm oil price drops over 2% on US-China trade conflict

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

KUALA LUMPUR: Malaysian palm oil futures fell over 2 percent to a two-year low on Wednesday evening, tracking weakness in related oils on China's Dalian Commodity Exchange and as an escalating U.S.-China trade conflict weighed on the market.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was down 2.4 percent at 2,204 ringgit ($545.95) a tonne at the close of trade, after hitting its lowest since July 14, 2016 at 2,202 ringgit.