Palm oil drops for third day on concerns of higher Indian import taxes

Reuters

Palm oil drops for third day on concerns of higher Indian import taxes

29. Aug. 2024 um 3:25 vorm. GMT

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SINGAPORE, Aug 29 (Reuters) -Malaysian palm oil futures extended declines on Thursday to a third session, as the prospect of India, the world's largest vegetable oil importer, raising import taxes weighed on market sentiment.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange fell 40 ringgit, or 1.02%, to 3,880 ringgit ($897.11) a metric ton as of 0241 GMT.

FUNDAMENTALS

* India is considering an increase in import taxes on vegetable oils to help protect farmers reeling from lower oilseed prices, two government sources said on Wednesday.

* The move, likely to be announced in the coming weeks, could dampen demand and reduce overseas purchases of palm oil.

* Dalian's most-active soyoil contract DBYcv1 dipped 0.05%, while its palm oil contract DCPcv1 lost 0.87%. However, soyoil prices on the Chicago Board of Trade BOcv1 added 0.44%.

* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

* The Malaysian ringgit MYR=, palm's currency of trade, strengthened 0.16% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.

* Oil prices held mostly steady on Thursday, after losing over 1% on Wednesday, as a smaller-than-expected draw in U.S. crude inventories and continued worries over China demand countered supply disruptions out of Libya. O/R

* Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.

* Palm oil may fall into a range of 3,819 ringgit to 3,864 ringgit per metric ton, following its failure to break resistance at 3,966 ringgit and a falling trendline, said Reuters technical analyst Wang Tao. TECH/C

MARKET NEWS

* Asian shares followed Wall Street futures lower on Thursday as Nvidia's results disappointed some bullish investors, while the dollar steadied and the Treasury yield curve came within a whisker of turning positive. MKTS/GLOB

DATA/EVENTS (GMT)

0900 EU Consumer Confid. Final August

1200 Germany CPI Prelim YY August

1200 Germany HICP Prelim YY August

1230 US GDP 2nd Estimate Q2

1230 US Initial Jobless Clm 24 Aug, w/e

($1 = 4.3250 ringgit)

cpo https://tmsnrt.rs/4dWtaKp

Reporting by Gabrielle Ng; Editing by Sumana Nandy

For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01.
* To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 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 OILS/ASIA1
Malaysian palm oil exports SGSPALM1
CBOT soyoil futures 0#BO:
CBOT soybean futures 0#S:
Indian solvent SOLVENT01
Dalian Commodity Exchange DC/MENU
Dalian soyoil futures 0#DBY:
Dalian refined palm oil futures 0#DCP:
Zhengzhou rapeseed oil 0#COI:
European edible oil prices/trades OILS/E

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