MARKET DEVELOPMENT
VEGOILS-Palm Falls From 2-wk Top as India Import Tax Hike Hits Sentiment
VEGOILS-Palm Falls From 2-wk Top as India Import Tax Hike Hits Sentiment
* Market set for first losing session in five
* India palm oil demand to weaken on import tax - Trader
* Weaker soyoil also weighs on market - Trader
15/08/2017 (Reuters) - Malaysian palm oil futures fell in early trade on Monday and were set for their first fall in five sessions as sentiment took a hit after India on Friday said it would raise import taxes on crude and refined edible oils.
India, the world's largest buyer of vegetable oils, doubled the import tax on crude palm oils to 15 percent and raised the import tax on refined palm oils to 25 percent to protect local oilseed farmers from cheaper imports from top suppliers Malaysia and Indonesia.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was down 0.2 percent at 2,677 ringgit ($624.01) at the midday break.
Traded volumes stood at 10,614 lots of 25 tonnes each at noon.
"The market may trade cautiously after the import duty hike in India," said a futures trader from Kuala Lumpur, adding that Indian demand for palm oil could decline in the coming weeks.
Cargo surveyor data showing Malaysia's palm oil exports for the first half of August is scheduled for release on Tuesday.
Another trader said that while India's announcement partly weighed down palm, prices were also tracking weaker performing soyoil on the Chicago Board of Trade and China's Dalian Commodity Exchange.
Palm oil prices are impacted by the movements in related edible oils including soy, as they compete for a share in the global vegetable oils market.
The October soybean oil contract on the Chicago Board of Trade was slightly down 0.1 percent, while the January soybean oil on the Dalian Commodity Exchange fell 0.2 percent.
In other related oils, the January palm olein contract was up 0.5 percent.
Palm, soy and crude oil prices at 0511 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 0 +0.00 0 0 0
MY PALM OIL SEP7 2677 +1.00 2654 2678 345
MY PALM OIL OCT7 2677 -5.00 2661 2681 5556
CHINA PALM OLEIN JAN8 5440 +26.00 5370 5446 453814
CHINA SOYOIL JAN8 6292 -14.00 6232 6328 331646
CBOT SOY OIL DEC7 33.96 +0.00 33.7 34.05 6940
INDIA PALM OIL AUG7 502.60 +2.30 501.60 507.8 807
INDIA SOYOIL AUG7 647.4 +1.55 645.7 655 4680
NYMEX CRUDE SEP7 48.78 -0.04 48.71 48.90 18998
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel
($1 = 4.2900 ringgit)
($1 = 64.0175 Indian rupees)
($1 = 6.6615 Chinese yuan)
* India palm oil demand to weaken on import tax - Trader
* Weaker soyoil also weighs on market - Trader
15/08/2017 (Reuters) - Malaysian palm oil futures fell in early trade on Monday and were set for their first fall in five sessions as sentiment took a hit after India on Friday said it would raise import taxes on crude and refined edible oils.
India, the world's largest buyer of vegetable oils, doubled the import tax on crude palm oils to 15 percent and raised the import tax on refined palm oils to 25 percent to protect local oilseed farmers from cheaper imports from top suppliers Malaysia and Indonesia.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was down 0.2 percent at 2,677 ringgit ($624.01) at the midday break.
Traded volumes stood at 10,614 lots of 25 tonnes each at noon.
"The market may trade cautiously after the import duty hike in India," said a futures trader from Kuala Lumpur, adding that Indian demand for palm oil could decline in the coming weeks.
Cargo surveyor data showing Malaysia's palm oil exports for the first half of August is scheduled for release on Tuesday.
Another trader said that while India's announcement partly weighed down palm, prices were also tracking weaker performing soyoil on the Chicago Board of Trade and China's Dalian Commodity Exchange.
Palm oil prices are impacted by the movements in related edible oils including soy, as they compete for a share in the global vegetable oils market.
The October soybean oil contract on the Chicago Board of Trade was slightly down 0.1 percent, while the January soybean oil on the Dalian Commodity Exchange fell 0.2 percent.
In other related oils, the January palm olein contract was up 0.5 percent.
Palm, soy and crude oil prices at 0511 GMT
Contract Month Last Change Low High Volume
MY PALM OIL AUG7 0 +0.00 0 0 0
MY PALM OIL SEP7 2677 +1.00 2654 2678 345
MY PALM OIL OCT7 2677 -5.00 2661 2681 5556
CHINA PALM OLEIN JAN8 5440 +26.00 5370 5446 453814
CHINA SOYOIL JAN8 6292 -14.00 6232 6328 331646
CBOT SOY OIL DEC7 33.96 +0.00 33.7 34.05 6940
INDIA PALM OIL AUG7 502.60 +2.30 501.60 507.8 807
INDIA SOYOIL AUG7 647.4 +1.55 645.7 655 4680
NYMEX CRUDE SEP7 48.78 -0.04 48.71 48.90 18998
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel
($1 = 4.2900 ringgit)
($1 = 64.0175 Indian rupees)
($1 = 6.6615 Chinese yuan)