VEGOILS-Palm oil gains as India extends lower duty on edible oil imports
16.01.2024 (Nasdaq) - (Updates with midday prices, analyst's comments)
By Danial Azhar
KUALA LUMPUR, Jan 16 (Reuters) - Malaysian palm oil futures rose on Tuesday, driven by top importer India's move to allow edible oil imports at a concessional duty for one more year.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose 49 ringgit, or 1.29%, to 3,849 ringgit ($821.91) by midday.
India's move to allow lower import duties on edible oils until March 2025, coupled with precariously lower production saw Malaysian palm oil prices rise, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
The lower import duty structure on crude palm oil, crude sunflower oil and crude soyoil in India, the world's biggest importer of vegetable oil, was set to expire in March 2024.
Supramaniam said preliminary palm oil production estimates for Jan. 1-15 in Malaysia, the world's second-largest producer, saw a double digit fall of about 17%.
"Thus prices will remain resilient and extend gains, especially with lower production in Q1."
Dalian's most-active soyoil contract fell 0.16%, while its palm oil contract added 0.52%. Soyoil prices on the Chicago Board of Trade were up 0.08%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for Jan. 1-15 were estimated to be down 2.6% to 604,474 tons from a month earlier, independent inspection company AmSpec Agri Malaysia said on Monday.
Data from cargo surveyor Intertek Testing Services showed that exports for Jan. 1-15 rose 6.5% to 629,918 tons.
The ringgit , palm's currency of trade, fell 0.36% against the dollar, making the commodity less expensive for buyers holding foreign currency.
Oil prices were mixed on Tuesday, after losses in the previous session, as markets weighed broad economic concerns against weather-related U.S. demand-supply issues and continued tensions in the Middle East that led to more tanker diversions. [O/R]
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil may fall to 3,768 ringgit per ton, following its failure to break resistance at 3,868 ringgit, Reuters technical analyst Wang Tao said. TECH/C
($1 = 4.6830 ringgit)
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^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Danial Azhar; Editing by Subhranshu Sahu and Mrigank Dhaniwala) ((danial.azhar@thomsonreuters.com ; Twitter: https://twitter.com/dan_azh ;;)) ((For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type . * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in and press enter, or double click between the brackets. * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils
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