JAKARTA: Malaysian palm oil futures rose on Friday after three straight sessions of losses, supported by recovery in rival vegetable oils and talks of possible changes in Indonesia’s export levy, yet it posted the first weekly decline in four weeks.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 118 ringgit, or 2.38%, to 5,081 ringgit ($1,137.20) a metric ton at closing. The contract fell 0.37% for the week. “This rumour about a possibility of Indonesia revising levy or tax structure caused some panic buying,” a Kuala Lumpur-based trader said.
There was no official announcement on the levy changes and Indonesian officials did not respond to Reuters’ request for comments about the rumour. Profit taking ahead of the weekend and recovery in Chicago soyoil and Dalian palm olein added strength to the contract, another trader said.
Dalian’s most-active soyoil contract fell 0.46%, while its palm oil contract rose 2.06%. Soyoil prices on the Chicago Board of Trade were up 2.33%.
Palm oil tracks price movements of rival edible oils, as it competes for a share in the global vegetable oils market. Malaysian palm oil exports in Nov. 1-15 declined between 6% to 7.3% from a month ago, data from AmSpec Agri and cargo surveyor Intertek Testing Services said on Friday, but improved from Nov. 1-10 export data.
Indonesia’s government reaffirmed to lawmakers this week a plan to implement a 40% mandatory biodiesel mix with palm oil-based fuel, known as B40, in January 2025, as part of the new government’s “quick wins” programmes.
The European Parliament sought on Thursday to water down a ban on the import of commodities such as beef and soy linked to deforestation, and backed a one-year delay to the new rule, in a fresh push-back against the EU’s environmental agenda.
Source: Brecorder
