Govt optimistic of CPO hitting RM2,600

KUALA LUMPUR: The Plantation Industries and Commodities Ministry is optimistic that the price of crude palm oil (CPO) will continue to rise up to RM2,500-RM2,600 per tonne by the end of this year.

Minister Datuk Muhd Khairuddin Aman Razali said demand for the country’s palm oil products continued to record an increase despite the Covid-19 pandemic.

“We are seeing an increase in demand from the Middle East, Africa and even markets such as the Philippines. We are confident that this pandemic will not constrain the palm oil industry but will instead propel it,” he said.

He said the country is targeting between Rm65bil and Rm70bil in palm oil export earnings in 2020, from Rm63bil last year.

As of yesterday, the physical price for palm oil stood at RM2,860 per tonne and CPO futures contracts, at RM2,689 and RM2,850. — Bernama