Malaysian palm oil rises in second session of strong Dalian oils
Malaysian palm futures rose on Thursday for the second consecutive session, following the strength of the Dalian market as China shifts to purchasing palm oil in response to a trade dispute with Canada.
The benchmark contract for palm oil delivery in June on the Bursa Derivatives exchange gained 54 ringgit or 1.27% to 4,313 Ringgit ($973.81) per metric ton.
The ongoing China-Canada canola oil trade is supporting palm prices. China has shifted from buying canola oil to palm," said a Kuala Lumpur based trader.
The Dalian Commodity Exchange's palm oil contract gained 0.54% while the most active soyoil contract gained 0.48%. The Chicago Board of Trade's (CBOT), which trades soyoil, saw a 0.72% increase in prices.
Indonesia has raised the crude palm oil benchmark price for April from $961.54 per metric ton to $961.54. The export tax will remain at $124 per ton with the new price.
Currently, the country imposes an additional 7.5% tax on CPO exports. For more refined palm oils, this tax ranges between 3%-6% of the price of reference.
The Indonesian Palm Oil Association's (GAPKI), on Thursday, reported that Indonesian palm oil inventories at the end January were up 13.98% despite a decline in production and exports falling to a 4-month low.
Intertek Testing Services, a cargo surveyor, said that exports of Malaysian products containing palm oil for the period March 1-25 fell 8.1%, to 835.732 metric tonnes, month-on-month. AmSpec Agri Malaysia, an independent inspection company, estimated that exports had fallen 8.5% during the same period.
(source: Reuters)
