VEGOILS-Palm oil dips as Indonesia sets lower export tax

17/10/2022 (Nasdaq), Jakarta - Malaysian palm oil futures opened lower on Monday, shedding gains from the previous session, as rival Indonesia set lower palm oil export tax for the second half of October.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange fell 0.85% to 3,833 ringgit ($813.46) per tonne in early trading, after gaining nearly 5% on Friday.

FUNDAMENTALS

* Indonesia has set the crude palm oil reference price for Oct. 16-31 at $713.89 per tonne, a Trade Ministry document distributed on Saturday showed, putting export tax at $3 per tonne, down from $33 imposed on the previous reference price.

* Exports of Malaysian palm oil products for Oct. 1-15 fell 4% from the same period in September, cargo surveyor Intertek Testing Services said on Saturday, while independent inspection company AmSpec Agri Malaysia reported a 1.9% increase.

* Dalian's most-active soyoil contract DBYcv1 was flat, while its palm oil contract DCPcv1 gained 2.51%. Soyoil prices on the Chicago Board of Trade BOc2 rose 0.6%.

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

* The ringgit MYR=, palm's currency of trade, fell 0.15% against the dollar, making the commodity cheaper for holders of foreign currency.

* Palm oil may retrace towards a support at 3,707 ringgit per tonne, following its failure to break a resistance at 3,858 ringgit. TECH/C

MARKET NEWS

* Asian share markets slipped on Monday following another drubbing for Wall Street as investors brace for further drastic tightening in global financial conditions, with all the risks of recession that brings. MKTS/GLOB

DATA/EVENTS (GMT)

No Major data/events expected on Monday

($1 = 4.7120 ringgit)

Reuters

https://www.nasdaq.com/articles/vegoils-palm-oil-dips-as-indonesia-sets-lower-export-tax