MARKET DEVELOPMENT
Palm Oil Fluctuates as Steady Tax Rate Counters Export Concern
Palm Oil Fluctuates as Steady Tax Rate Counters Export Concern
16/12/2013 (Bloomberg) - Palm oil swung between gains and losses as Malaysia announced that it will maintain export taxes in January, countering speculation that lower shipments from the second-largest producer this month may boost stockpiles.
The contract for delivery in February climbed and dropped at least 0.3 percent on the Bursa Malaysia Derivatives in Kuala Lumpur, before ending the morning session 0.2 percent lower at 2,557 ringgit ($790) a metric ton. Futures lost 4 percent last week, snapping four weeks of gains.
Shipments from Malaysia fell 14 percent to 640,240 tons in the first 15 days of December from a month earlier, surveyor Intertek said today. The tax on crude palm oil exports will be left at 5 percent for January, the Customs Department said.
“The current high price level will discourage palm oil demand in terms of biodiesel use, especially in the European energy market,” said Tan Chee Tat, an analyst at Phillip Futures Pte. The tax being kept unchanged for January might help to revive export demand, he said.
Stockpiles in Malaysia climbed 7.2 percent to 1.98 million tons last month, rising for a third month, according to data from the country’s palm board. While the reserves expanded for a third month, the holdings remain 23 percent lower than last year. Prices in are heading for the first annual gain since 2010.
Soybean oil for March delivery declined as much as 0.5 percent to 39.99 cents a pound on the Chicago Board of Trade and traded at 40 cents. Soybeans for delivery in March lost 0.4 percent to $13.085 a bushel.
Refined palm oil for May delivery was little changed at 6,066 yuan ($999) a ton on the Dalian Commodity Exchange. Soybean oil was little changed at 7,034 yuan.
The contract for delivery in February climbed and dropped at least 0.3 percent on the Bursa Malaysia Derivatives in Kuala Lumpur, before ending the morning session 0.2 percent lower at 2,557 ringgit ($790) a metric ton. Futures lost 4 percent last week, snapping four weeks of gains.
Shipments from Malaysia fell 14 percent to 640,240 tons in the first 15 days of December from a month earlier, surveyor Intertek said today. The tax on crude palm oil exports will be left at 5 percent for January, the Customs Department said.
“The current high price level will discourage palm oil demand in terms of biodiesel use, especially in the European energy market,” said Tan Chee Tat, an analyst at Phillip Futures Pte. The tax being kept unchanged for January might help to revive export demand, he said.
Stockpiles in Malaysia climbed 7.2 percent to 1.98 million tons last month, rising for a third month, according to data from the country’s palm board. While the reserves expanded for a third month, the holdings remain 23 percent lower than last year. Prices in are heading for the first annual gain since 2010.
Soybean oil for March delivery declined as much as 0.5 percent to 39.99 cents a pound on the Chicago Board of Trade and traded at 40 cents. Soybeans for delivery in March lost 0.4 percent to $13.085 a bushel.
Refined palm oil for May delivery was little changed at 6,066 yuan ($999) a ton on the Dalian Commodity Exchange. Soybean oil was little changed at 7,034 yuan.