Positive signs: Crude palm oil continues to extend its rally trading above RM3,800 per tonne. Reuters
PLANTERS ushered in the new year in a euphoric mood as crude palm oil (CPO) continues to extend its rally trading above RM3,800 per tonne, which is almost a decade-high price.
However, despite the higher CPO prices, most planters are expecting mixed performance in their earnings outlook for this year with the industry currently facing severe workers shortage in the estates.
This situation has turned for the worst with the spread of the Covid-19 pandemic that restricts foreign workers recruitment which could lead to crop losses in the labour intensive oil palm sector.
KUALA LUMPUR (Dec 23): Malaysia’s move to resume the crude palm oil export tax at the highest rate of 8% in January 2021 is slightly negative for crude palm oil (CPO) prices as it will curb demand for palm oil from the country, stated PublicInvest Research in a note today.
PublicInvest Research analyst Chong Hoe Leong said the move will narrow the gap between Malaysian and Indonesian CPO prices to about RM570 per ton, from RM862 per ton, making it a more competitive playing field.
“The impact will be more taxing on pure upstream players, while it will be milder for integrated players,” he said.
Malaysia s move to resume palm oil export tax come January 2021 may curb palm oil prices, demand — PublicInvest Research – MPOC mpoc.org.my - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mpoc.org.my Daily Mail and Mail on Sunday newspapers.