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VEGOILS-Malaysian palm drops on higher export tax, stronger ringgit
September 15, 2017 / 5:42 AM / in 3 months

VEGOILS-Malaysian palm drops on higher export tax, stronger ringgit

    * Palm tumbles, down 0.6 pct at midday
    * Rise in export tax for Oct drags prices - trader

    KUALA LUMPUR, Sept 15 (Reuters) - Malaysian palm oil futures
fell in the Friday morning session, retreating further from a
six-month high, as a rise in export tax for October and a
strengthening ringgit dampened sentiment.
    The benchmark palm oil contract for November delivery
 on the Bursa Malaysia Derivatives Exchange slid 0.56
percent to 2,851 ringgit ($680.43) by the midday break, easing
further from a six-month high of 2,873 ringgit hit on Wednesday.
    Trading volumes stood at 26,951 lots of 25 tonnes each,
higher than the previous session's midday level.
    A Kuala Lumpur-based futures trader said the increase of
crude palm oil export tax for October to 6 percent from 5.5
percent weighed on the sentiment.
    "Market is low today because the higher palm oil export tax
is going to affect demand, especially from China, as they are
restocking ahead of winter. This will have negative effects on
prices in the midterm," the trader said.
    A second trader from Kuala Lumpur said a stronger ringgit
was also weighing on palm, with some traders taking profit,
after the contract failed to breach the 2,900 ringgit per tonne
mark this week.
    Traders are also looking out for price forecasts from
analysts speaking at the Globoil India conference, which began
on Wednesday. Top industry analyst James Fry said on Thursday
that palm prices were likely to fall below 2,400 ringgit per
tonne towards the end of the year.
    Two other top industry analysts, Thomas Mielke and Dorab
Mistry, are scheduled to speak at the conference later in the
day.    
    "Fry was bearish on palm's price outlook but some are
thinking Mistry may be more positive," the second trader said. 
    In other related oils, the Chicago Board of Trade (CBOT)
soybean oil contract fell 0.06 percent.
    The January soybean oil contract on the Dalian Commodity
Exchange climbed 0.06 percent, while the January palm
olein dropped 0.38 percent, snapping five straight
sessions of gains.

  Palm, soy and crude oil prices at 0505 GMT
 Contract           Month      Last    Change     Low       High       Volume
 MY PALM OIL       SEP7           0     +0.00       0          0            0
 MY PALM OIL       OCT7        2865    -22.00    2849       2872          353
 MY PALM OIL       NOV7        2851    -16.00    2835       2857        13382
 CHINA PALM OLEIN  JAN8        5750    -22.00    5732       5798       446794
 CHINA SOYOIL      JAN8        6392     +4.00    6380       6426       349148
 CBOT SOY OIL      DEC7       35.05     -0.02   34.98      35.14         4055
 INDIA PALM OIL    SEP7      546.80     -1.80  546.20      547.5          118
 INDIA SOYOIL      SEP7       664.5     -0.65   662.1      664.5          250
 NYMEX CRUDE       OCT7       49.77     -0.12   49.62      49.80        15751
 
 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
 
($1 = 4.1900 ringgit)
($1 = 64.09 Indian rupees)
($1 = 6.55 Chinese yuan)  
    

 (Reporting by Liz Lee and Tavleen Tarrant; Editing by Amrutha
Gayathri)
  
 
 

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