The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives fell below RM2,300 per tonne at Thursday's close after the World Health Organisation (WHO) declared the COVID-19 a global pandemic.
Barring groundnut oil, the majority of oils and oil seeds traded low on weak global cues, physical demand and coronavirus scare, with soya refined being quoted at ₹785 for 10 kg, while soya solvent ruled at ₹735-40.
The COVID-19 virus worldwide and the rail blockades at home have depressed grain futures prices but canola prices have fared better than most other parts of the vegetable oil complex and crude oil values.
Crude palm oil (CPO) prices will likely remain under pressure as the several factors, including the Coronavirus Disease 2019 (Covid-19) outbreak, are expected to continue limiting demand in the coming months.
The Malaysian Palm Oil Board’s February data showed an increase in crude palm oil (CPO) production to 1.29 million tonnes (+10% month-on-month [m-o-m]; -16.6% year-on-year [y-o-y]) after four consecutive months of decline. This increase was in line with market expectations.