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Malaysia: Palm oil slips on India, China demand concerns

RBD Palm Oil
Malaysia
Published Jan 18, 2023

Tridge summary

Malaysian palm oil futures reversed early gains on Tuesday, weighed by growing concerns of slowing export demand on talks of higher Indian import duty and reports of weak China economic data.

Original content

The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange lost 55 ringgit, or 1.43%, to 3,797 ringgit ($877.92) a tonne. Palm oil earlier received support from tight supplies as some planters estimated an 11%-15% fall in production for the Jan. 1-15 period from the month before, a Kuala Lumpur-based trader said. But the contract was pressured by lower exports, weakness in crude oil prices and a record soybean crop in Brazil, the trader added. Exports of Malaysian palm oil products for Jan. 1-15 fell 28.5% to 453,771 tonnes from 634,618 tonnes shipped during Dec. 1-15, cargo surveyor Societe Generale de Surveillance said. “India may raise import tax on palm oil products in the upcoming budget as farmers are ready to harvest their domestic winter oilseed crops and inflation is under control,” said Mitesh Saiya, trading manager at Mumbai-based trading firm Kantilal Laxmichand & Co. Further stoking demand woes, China’s economic growth in 2022 ...
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