26 Mar 2020
On Tuesday (17/3/2020), the price of CPO for the 3-month delivery contract at Bursa Malaysia Derivatives (BMD) rose 1.44% compared to yesterday's closing position. CPO is now traded at RM 2,252 per tonne.
Currently, the price of CPO has indeed collapsed when compared to its price early last year. The CPO price is recorded to have decreased by 26.2% year to date (ytd). The triggers are indeed many, ranging from the conflict between Malaysia and India to the latest sentiment of the COVID-19 pandemic.
"The price of palm oil has plummeted due to a disruption in demand in the European Union and the Middle East when the number of cases of COVID-19 infection in those countries has increased and become a risk that has impacted demand," said Anilkumar Bagani, a head of commodity research at the Sunvin Group.
Malaysian palm oil exports for the period 1-15 March fell between 1.8% and 9.6% compared to the previous month based on a survey conducted by cargo surveyors.
Because its price has fallen sharply, CPO has begun to be eyed by traders. Especially because next month (April) is the start of Ramadan. Usually during fasting, consumption increases and this drives up demand for palm oil. This has become one of the positive sentiments for CPO, and so has the potential to raise the price.
However, due to the COVID-19 pandemic 
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