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KUALA LUMPUR: Crude palm oil futures for third-month delivery rose to a high of RM 3,330 as investors assessed lower import taxes in India, the main buyer, and declining Malaysian exports of tropical oil .
Prices are moving in a choppy range, and this will continue until there is more clarity on supplies in the Malaysian Palm Oil Board (MPOB) report next week, said Gnanasekar Thiagarajan, head of business and strategy strategies. Kaleesuwari Intercontinental coverage.
The industry regulator will release data on stocks, production and exports on producer number 2 on December 10.
India’s cut in tariffs is supporting palm oil, while weaker exports and the end of Malaysia’s tax exemption on crude palm oil in December are limiting gains, Thiagarajan said.
Futures in Kuala Lumpur rose as much as 0.8% in the morning session, after falling by the same amount. Prices rose 10% in November and are trading near their highest level in eight years.
Malaysia has no plans to extend a tax exemption on crude palm oil exports beyond 2020. This could prevent any increase in purchases from India, which last week cut its import duties on crude oil.
Indonesia’s top producer on Monday raised CPO export taxes to $ 33 a tonne in December, from $ 3 this month, a move that may further curb buying interest from key importers.
Malaysia’s palm oil exports fell about 19% in November from the previous month, according to data from the independent cargo inspector SGS Malaysia, as shipments to India and Pakistan plummeted. – Bloomberg
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