KUALA LUMPUR (April 13): Malaysian palm oil futures closed 1% lower, a fifth consecutive day of losses, after Malaysia said it would resume an export tax and on expectations of slowing demand growth, traders said on Friday.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was down 1% at 2,399 ringgit (US$618.54) a tonne at the close of trade. It earlier fell to 2,398 ringgit, its weakest levels since April 4.
Palm is down 4.2% for the week, its sharpest weekly decline in four months.
Trading volumes stood at 42,343 lots of 25 tonnes each at the close on Friday.
“Palm fell on the tax announcement and on expectations of reducing export growth,” a Kuala Lumpur based trader said.
Malaysia, the world’s second largest palm producer and exporter, said it would resume export duties on crude palm oil after four months of tax exemptions.
Malaysia said on Friday that it would set its crude palm oil export tax at 5% for May, according to the Malaysian Palm Oil Board, citing the national customs department.
A forecast slowdown in export growth is also weighing on the market, said another trader, referring to shipment data from cargo surveyors scheduled for release on Monday.
Palm oil shipments last rose 25%-32% during the April 1-10 period.
In other related oils, the Chicago Board of Trade’s May soybean oil contract gained 0.3%, after dropping as much as 1% earlier this week.
The May soybean oil on China’s Dalian Commodity Exchange slipped as much as 0.4%, while the Dalian May palm oil contract edged down 0.04%.
Palm oil prices are affected by movements in rival edible oils, as they compete for a share in the global vegetable oils market.
Palm, soy and crude oil prices as of 1105 GMT
Contract Month Last Change Low High Volume
MY PALM OIL APR8 0 +0.00 0 0 0
MY PALM OIL MAY8 2389 -30.00 2389 2430 1953
MY PALM OIL JUN8 2400 -24.00 2398 2432 17387
CHINA PALM OLEIN SEP8 5058 -28.00 5042 5074 222502
CHINA SOYOIL SEP8 5844 -30.00 5808 5852 384518
CBOT SOY OIL MAY8 31.71 +0.08 31.59 31.76 5465
INDIA PALM OIL APR8 639.30 -1.70 638.50 641.9 730
INDIA SOYOIL APR8 768.2 -0.25 767.75 771 3100
NYMEX CRUDE MAY8 66.78 -0.29 66.70 67.76 166921
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
(US$1 = 3.8785 ringgit)
(US$1 = 65.2100 Indian rupees)
(US$1 = 6.2777 Chinese yuan)