CPO down 7.9% despite biodiesel mandate

Crude palm oil (CPO) fell 7.9%, its biggest drop in more than two months, despite the government’s assurance that it would continue with its Biofuel Industry Act 2007 and subsequent plans to subsidize biodiesel. At the close of trade, IOI Corporation Bhd dropped 20 sen to RM3.80 (US$1.07), Kuala Lumpur Kepong Bhd fell 15 sen to RM9.85 (US$2.77), IJM Plantation Bhd slipped five sen to RM2.04 (US$0.57), Kulim (M) Bhd shed 10 sen to RM4.90 (US$1.38) and Batu Kawan Bhd gave up five sen to RM8.50 (US$2.39). “With crude oil prices below the CPO price, biodiesel production is not as attractive,” according to an analyst. (January 14, 2009)