Mistry: CPO price outlook unfavourable

“The pandemic happening across the world has resulted in severe contraction of the economy, hence, destroying demand for biodiesel, which the Indonesian government initially planned for this year, followed by Malaysia, ” Mistry (file pic) said.

KUALA LUMPUR: With economies in a cautious mode amid market volatility due to Covid-19, the price outlook for crude palm oil (CPO) is not going to be favourable, gravitating towards the cost of production of between RM1,500 and RM1,800 per tonne, according to veteran industry analyst Dorab Mistry.

He said the market has discounted to trade at the RM2,000 level per tonne, and this price has yet to unfold post the fasting month of Ramadan, that is June and July onwards.