B10 mandate lifts CPO price

Prime Minister Tun Dr Mahathir Mohamed launches B10 transportation sector biodiesel Programme in Putrajaya in this filepic. Also present are Primary Industry minister Teresa Kok (third left), Deputy minister Datuk Seri Shamsul Iskandar Md Akin (partly hidden), Sarawak deputy Chief Minister Datuk Amar Douglas Uggah Embas (second left) and ministry secretary general Datuk Zurinah Pawanteh (left). - MOHD SAHAR MISNI/The Star

PETALING JAYA: The increased mandated usage of palm oil as fuel and rising demand from key buyers are helping to pare down record-high inventory and boost the commodity price to its highest level since July last year.

The third-month crude palm oil (CPO) futures contract on Bursa Derivatives, the global benchmark, is 17% higher from its November low. At RM2,306 a tonne on Monday, the market has good reason to be bullish on palm oil.