MARKET DEVELOPMENT
VEGOILS-Palm Slips on Uncertainty Over Indonesian Export Levies
VEGOILS-Palm Slips on Uncertainty Over Indonesian Export Levies
* Investors confused over implementation of Indonesian levies - trader
* Prices rangebound between 2,280-2,290 rgt
18/06/2015 (Reuters) - Malaysian palm oil futures fell in tight trade on Wednesday as investors grew uncertain over the implementation of Indonesian palm levies and whether they can effectively fund biodiesel subsidies in the world's top producer.
The regulation will require exporters in Indonesia to pay a tax of $50 per tonne of crude palm oil and $30 for processed palm oil product shipments. The proceeds will be used to fund ambitious biodiesel mandates that are slated to soak up supplies of the tropical oil.
The levy was initialy due to be introduced in the fourth week of May, but after several rounds of delays to the start up of the public body that will collect the levy, Indonesia said this week the regulation will kick in on July 1.
"The market is very dull because people are confused about the levy," said a trader with a foreign commodities brokerage in Kuala Lumpur. "People are doubting how effective the biodiesel mandate is going to be."
By the midday break, the September palm oil contract on the Bursa Malaysia Derivatives exchange had edged down 0.3 percent to 2,284 ringgit ($609.31) a tonne, falling for six in eight sessions. Prices were stuck in rangebound trade between 2,280-2,290 ringgit.
Total traded volume stood at 13,519 lots of 25 tonnes each, just above the usual 12,500 lots.
Indonesia's exports of palm and palm kernel oils for May eased 1 percent from a month earlier to 2.215 million tonnes, the Indonesian Palm Oil Association (GAPKI) said in a statement on Tuesday.
In vegetable oil markets, the U.S. July soyoil contract rose 0.3 percent in early Asian trade, while the most
active September soybean oil contract on the Dalian Commodity Exchange gained 1.1 percent.
In other markets, crude prices were virtually unchanged in early Asian trade on Wednesday as firm demand met strong output, with the market waiting for U.S. storage figures later in the day.
Palm, soy and crude oil prices at 0612 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL5 2278 -11.00 2278 2286 29
MY PALM OIL AUG5 2286 -8.00 2283 2292 2666
MY PALM OIL SEP5 2284 -7.00 2280 2290 6955
CHINA PALM OLEIN JAN6 5204 +40.00 5138 5222 756550
CHINA SOYOIL JAN6 5938 +68.00 5870 5956 557592
CBOT SOY OIL JUL5 32.99 -0.10 32.89 33.02 3333
INDIA PALM OIL JUN5 453.90 -0.10 451.60 454.40 278
INDIA SOYOIL JUN5 610.50 +2.00 609.40 610.50 790
NYMEX CRUDE JUL5 60.10 +0.13 59.98 60.17 5565
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 = 3.7485 ringgit)
($1 = 6.2089 Chinese yuan)
($1 = 64.11 Indian rupees)
* Prices rangebound between 2,280-2,290 rgt
18/06/2015 (Reuters) - Malaysian palm oil futures fell in tight trade on Wednesday as investors grew uncertain over the implementation of Indonesian palm levies and whether they can effectively fund biodiesel subsidies in the world's top producer.
The regulation will require exporters in Indonesia to pay a tax of $50 per tonne of crude palm oil and $30 for processed palm oil product shipments. The proceeds will be used to fund ambitious biodiesel mandates that are slated to soak up supplies of the tropical oil.
The levy was initialy due to be introduced in the fourth week of May, but after several rounds of delays to the start up of the public body that will collect the levy, Indonesia said this week the regulation will kick in on July 1.
"The market is very dull because people are confused about the levy," said a trader with a foreign commodities brokerage in Kuala Lumpur. "People are doubting how effective the biodiesel mandate is going to be."
By the midday break, the September palm oil contract on the Bursa Malaysia Derivatives exchange had edged down 0.3 percent to 2,284 ringgit ($609.31) a tonne, falling for six in eight sessions. Prices were stuck in rangebound trade between 2,280-2,290 ringgit.
Total traded volume stood at 13,519 lots of 25 tonnes each, just above the usual 12,500 lots.
Indonesia's exports of palm and palm kernel oils for May eased 1 percent from a month earlier to 2.215 million tonnes, the Indonesian Palm Oil Association (GAPKI) said in a statement on Tuesday.
In vegetable oil markets, the U.S. July soyoil contract rose 0.3 percent in early Asian trade, while the most
active September soybean oil contract on the Dalian Commodity Exchange gained 1.1 percent.
In other markets, crude prices were virtually unchanged in early Asian trade on Wednesday as firm demand met strong output, with the market waiting for U.S. storage figures later in the day.
Palm, soy and crude oil prices at 0612 GMT
Contract Month Last Change Low High Volume
MY PALM OIL JUL5 2278 -11.00 2278 2286 29
MY PALM OIL AUG5 2286 -8.00 2283 2292 2666
MY PALM OIL SEP5 2284 -7.00 2280 2290 6955
CHINA PALM OLEIN JAN6 5204 +40.00 5138 5222 756550
CHINA SOYOIL JAN6 5938 +68.00 5870 5956 557592
CBOT SOY OIL JUL5 32.99 -0.10 32.89 33.02 3333
INDIA PALM OIL JUN5 453.90 -0.10 451.60 454.40 278
INDIA SOYOIL JUN5 610.50 +2.00 609.40 610.50 790
NYMEX CRUDE JUL5 60.10 +0.13 59.98 60.17 5565
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 = 3.7485 ringgit)
($1 = 6.2089 Chinese yuan)
($1 = 64.11 Indian rupees)