Palm edges up on gains in US soybean, India duty hike

1

NEW DELHI (June 6): Higher benchmark soybean prices in Chicago and India’s plans to raise the import tax on soft oils pushed up Malaysian palm oil futures on Wednesday, a day after they hit their lowest in nearly a month.

The palm oil contract for August delivery on the Bursa Derivatives Exchange was up 0.12% at RM2,405 (US$605.41) a tonne at the midday break.

Trading volume stood at 8,274 lots of 25 tonnes.



“The market edged a little higher on the back of stronger soybean prices in Chicago,” said a -based palm trader.

On Wednesday, the most active soybean futures on the Chicago Board Of Trade rose 0.4% to US$10.04-3/4 a bushel, having closed little changed on Tuesday.

The report that India would raise the import tax on soft oils also helped the market edge up, said another trader from Kuala Lumpur.

A senior government official in New Delhi said on Tuesday that India, the world’s biggest vegetable oil importer, was considering raising import taxes on soft oils.

India currently levies a 30% import tax on soyoil and 25% each on rapeseed and sunflower oils. The import taxes on crude and refined palm oils are at 44% and 54% respectively.

Palm oil is influenced by rival edible oils as they compete for a share in the global vegetable oils market.

Palm oil demand continues to be weak, as Ramadan buying has ebbed, said the second trader.

Buyers typically stock up palm oil a month before Ramadan, which began in mid-May this year.



Malaysia’s palm in May dropped 8.8% from April to around 1.2 million tonnes, independent inspection company AmSpec Agri Malaysia said last week.

Cargo surveyor Societe Generale de Surveillance (SGS) said the country’s May palm oil exports fell 9.9% from a month ago.

In Indonesia, the world’s top palm oil exporter, shipments of palm and palm kernel oils plunged 13.6% in April, data from the Indonesia Palm Oil Association showed.

Palm oil may fall to RM2,364, as it has broken a support at RM2,408 per tonne, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

Palm, soy and crude oil prices at 0532 GMT

Contract             Month         Last    Change       Low      High    Volume
MY PALM OIL JUN8 2405 0.00 2397 2409 186
MY PALM OIL JUL8 2405 6.00 2398 2408 958
MY PALM OIL AUG8 2405 3.00 2399 2412 3,994
PALM OLEIN SEP8 5034 -4.00 5020 5054 142,312
CHINA SOYOIL SEP8 5814 -16.00 5810 5848 198,856
CBOT SOY OIL JUL8 30.87 0.60 30.73 30.89 2,311
INDIA PALM OIL JUN8 649.50 0.60 647.70 650.00 66
INDIA SOYOIL JUN8 756.50 0.35 755.00 760.00 1,410
NYMEX CRUDE JUL8 65.87 0.35 65.44 65.90 38,435

Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in yuan per tonne
India soy oil in rupee per 10 kg
Crude in US dollars per barrel

(US$1 = RM3.97)

Source: The Edge







Comments are Closed