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Palm ends three-day rally as India allows duty-free imports of competing oils

KUALA LUMPUR: Malaysian palm oil futures fell on Wednesday, ending a three-session rally, pressured by demand worries after top buyer India allowed duty-free imports of competing soy and sunflower oils.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange fell 93 ringgit, or 1.43%, to 6,389 ringgit ($1,454.36) a tonne, after swinging between slight gains and losses in early trade.

India’s palm oil imports could drop by nearly a fifth as now cheaper soyoil takes more market share, following Indonesia’s curbs on palm oil exports and New Delhi allowing duty-free imports of soyoil, dealers said.

Selling in the front-month contract was seen as Indian buyers are expected to start shifting to other oils after the world’s biggest edible oil buyer lifted the duties, a Kuala Lumpur-based trader said.

Palm surge over 3% amid uncertainties over Indonesia’s export policies

Indonesia will determine palm oil producers’ mandatory domestic sales volume based on their refining capacity and local demand for cooking oil, a trade ministry regulation document showed on Wednesday, as the government plans an industry audit.

In second-largest producer Malaysia, exports for May 1-25 rose 22.54% from the same period in April 1-25, according to independent inspection company AmSpec Agri Malaysia.

Dalian’s most-active soyoil contract rose 0.5%, while its palm oil contract gained 1.1%. Soyoil prices on the Chicago Board of Trade were fell 0.6%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm ends three-day rally as India allows duty-free imports of competing oils

Source: Brecorder

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