Malaysian palm oil recoups early losses after Indonesia hikes export levy but set for weekly loss

Published 2024년 12월 23일

Tridge summary

Malaysian palm oil futures recovered from early declines after Indonesia increased its export levy, but prices are still expected to fall for the second week in a row. The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange was barely changed at 4,506 ringgit ($999.11) a metric ton. The decision by Indonesia to raise its crude palm oil export levy from 7.5% to 10% is credited with helping to limit the midday losses. However, concerns about demand growth in 2025, especially in China, have led to a drop in oil prices, making palm oil less attractive as biodiesel feedstock.

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Original content

Malaysian palm oil futures recovered early declines on Friday after Indonesia hiked its export levy, though prices remained on track for a second weekly decline. The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange was little changed at 4,506 ringgit ($999.11) a metric ton by the midday break, after falling as much as 2.1% earlier in the day. Still, the contract has declined about 8.1% so far this week. The market recouped some losses following Indonesia’s decision to raise its crude palm oil export levy, a Kuala Lumpur-based trader. “Bargain buyers have also emerged and narrowed midday losses to close at 4,506 ringgit,” the trader said. Indonesia’s chief economic minister on Thursday said it will increase its export levy for crude palm oil to 10% from the current 7.5% to finance higher biodiesel subsidies. Dalian’s most-active soyoil contract rose 0.45%, while its palm oil contract shed 1.22%. Soyoil prices on the Chicago Board of Trade ...

Source: UkrAgroConsult