Malaysian palm oil futures rose on Monday as higher export taxes in top producer Indonesia boosted sales prospects, although gains were capped by cheaper rival oils and a stronger ringgit.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange rose 10 ringgit, or 0.2%, to 4,343 ringgit ($1,042.24) a tonne by midday.
“The Indonesian export duty increase may have helped Malaysia to regain palm oil export share in September,” Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group told Reuters.
Indonesia last week set its crude palm oil (CPO) export reference price 13% higher, prompting export taxes for the edible oil to jump from $93 per tonne in August to $166 per tonne in September.
But, lower prices of rival oils on the Chicago Board of Trade (CBOT) and the Dalian Commodity Exchange weighed on the contract.
CBOT’s soybean oil contract B0c2 edged lower by 0.5%, while palm DCPv1 and soybean oil DBYv1 prices on the Dalian fell 0.2% and 0.3%, respectively.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Capping gains further, the ringgit rose 0.5% against the dollar MYR=, making palm oil less attractive for holders of foreign currency.
Adds midday prices
SINGAPORE, Aug 30 (Reuters) – Malaysian palm oil futures rose on Monday as higher export taxes in top producer Indonesia boosted sales prospects, although gains were capped by cheaper rival oils and a stronger ringgit.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange rose 10 ringgit, or 0.2%, to 4,343 ringgit ($1,042.24) a tonne by midday.
“The Indonesian export duty increase may have helped Malaysia to regain palm oil export share in September,” Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group told Reuters.
Indonesia last week set its crude palm oil (CPO) export reference price 13% higher, prompting export taxes for the edible oil to jump from $93 per tonne in August to $166 per tonne in September.
But, lower prices of rival oils on the Chicago Board of Trade (CBOT) and the Dalian Commodity Exchange weighed on the contract.
CBOT’s soybean oil contract B0c2 edged lower by 0.5%, while palm DCPv1 and soybean oil DBYv1 prices on the Dalian fell 0.2% and 0.3%, respectively.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Capping gains further, the ringgit rose 0.5% against the dollar MYR=, making palm oil less attractive for holders of foreign currency.
Palm oil FCPOc3 may fall into a range of 4,155 ringgit to 4,251 ringgit, as it failed to break a resistance at 4,405 ringgit per tonne, Reuters technicals analyst Wang Tao said. TECH/C
($1 = 4.1670 ringgit)
Source: Reuters (Reporting by Fathin Ungku; Editing by Sherry Jacob-Phillips and Uttaresh.V)