MARKET DEVELOPMENT
Rupee Appreciation May Pressurize CPO Prices: Angel
Rupee Appreciation May Pressurize CPO Prices: Angel
29/06/2013 (MoneyControl.com) - CPO traded on mixed note yesterday and settled 0.06 percent lower. An increase in the export tax in Indonesia supported prices while an appreciation in the Rupee pressurized prices. KLCE palm oil futures declined 0.93 percent yesterday on credit concerns in China. However, strong export data and weak Ringgit capped the losses.
Indonesia has set the export tax for Palm oil at 10.5 percent for July, up from 9 percent in June.
Exports of Malaysian palm oil between June 1-25 were reported at 1,167,266 tn, up by 9.6 percent compared to 1,064,925 tn between May 1-25 as buyers stocked up for Ramadan that falls in July. Communal feasting during Ramadan drives up consumption of vegetable oil.
India's refined palm oil imports hit a record high in May by jumping 47.5 percent from April. The world's top buyer of vegetable oils imported 373,837 tonnes of refined palm oil in May.
The jump in refined palm oil purchases will raise the clamour for increasing import duties to protect local oilseed growers and refiners against cheaper supplies from major exporters Indonesia and Malaysia. But the Indian government is yet to pay any heed as inflation has only just reached comfortable levels.
Import of RBD palmolein touched 3,73,837 tn in May 2013, highest in any single month since edible oil imports were allowed under OGL in 1994," the Solvent Extractors’ Association of India said.
Outlook: CPO prices may trade on a mixed note as Rupee appreciation may pressurize prices while increase in export tax may support prices.
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Indonesia has set the export tax for Palm oil at 10.5 percent for July, up from 9 percent in June.
Exports of Malaysian palm oil between June 1-25 were reported at 1,167,266 tn, up by 9.6 percent compared to 1,064,925 tn between May 1-25 as buyers stocked up for Ramadan that falls in July. Communal feasting during Ramadan drives up consumption of vegetable oil.
India's refined palm oil imports hit a record high in May by jumping 47.5 percent from April. The world's top buyer of vegetable oils imported 373,837 tonnes of refined palm oil in May.
The jump in refined palm oil purchases will raise the clamour for increasing import duties to protect local oilseed growers and refiners against cheaper supplies from major exporters Indonesia and Malaysia. But the Indian government is yet to pay any heed as inflation has only just reached comfortable levels.
Import of RBD palmolein touched 3,73,837 tn in May 2013, highest in any single month since edible oil imports were allowed under OGL in 1994," the Solvent Extractors’ Association of India said.
Outlook: CPO prices may trade on a mixed note as Rupee appreciation may pressurize prices while increase in export tax may support prices.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.