November 20, 2017 / 5:24 AM / 2 months ago

VEGOILS-Palm hits near 2-month low as India raises import tax on edible oils

    * Palm declines nearly 2 percent in early trade
    * Market down on stronger ringgit, weaker export data -
Trader
    * Malaysia Nov 1-20 shipments down 6.2 pct m/m - ITS

    By Emily Chow
    SINGAPORE, Nov 20 (Reuters) - Malaysian palm oil futures on
Monday fell to their lowest in nearly two months as sentiment
took a hit from India's move to raise import tax of edible oils
to the highest in over a decade.
    India, the world's largest importer of edible oils, said it
would raise its import tax on crude palm oil to 30 percent from
15 percent, and increase the import tax on refined palm oil
imports to 40 percent from 25 percent.
    Weaker export data from a cargo surveyor and a stronger
ringgit, palm's currency of trade, also weighed on the
market, added traders.
    Gains in the ringgit usually make the edible oil more
expensive for foreign buyers. The ringgit rose to 4.1530 against
the dollar in early trade on Monday, its strongest levels in
over a year. It was last up 0.1 percent at 4.1550 per dollar.
    The benchmark palm oil contract for February delivery
 on the Bursa Malaysia Derivatives Exchange dropped 1.9
percent at 2,662 ringgit ($640.67) a tonne at the midday break.
    Earlier in the session, it touched 2,660 ringgit, its
weakest since Oct. 3.
    Traded volume stood at 22,121 lots of 25 tonnes each at
noon.
    "The market reacted largely to India's import tax hike,
which is quite steep, and then the ringgit also caused a
downside," said a futures trader from Kuala Lumpur.
    Palm oil shipments from Malaysia between Nov. 1-20 fell 6.2
percent versus the corresponding period last month, according to
data from cargo surveyor Intertek Testing Services before the
market's midday break.
    In other related edible oils, the December soybean oil
contract on the Chicago Board of Trade was down as much
as 0.9 percent, while the January soybean oil contract on the
Dalian Commodity Exchange fell up to 1.6 percent. 
    The January palm olein contract slid as much as 1.1
percent.
    Palm oil prices are impacted by movements in other edible
oils as they compete for a share of the global vegetable oils
market. 
   
    Palm, soy and crude oil prices at 0456 GMT
 Contract          Month    Last  Change     Low    High  Volume
 MY PALM OIL       DEC7     2619   +0.00    2619    2659     216
 MY PALM OIL       JAN8     2645   +0.00    2641    2670    4860
 MY PALM OIL       FEB8     2662   +0.00    2660    2683    8694
 CHINA PALM OLEIN  JAN8     5430  -60.00    5402    5496  211642
 CHINA SOYOIL      JAN8     5904  -78.00    5884    5974  289276
 CBOT SOY OIL      DEC7    34.15   -0.29   34.13   34.42    4754
 INDIA PALM OIL    NOV7   568.90  +21.80  553.40   568.9      93
 INDIA SOYOIL      NOV7   692.15  +13.05     690  698.95     830
 NYMEX CRUDE       DEC7    56.63   +0.08   56.53   56.70    1431
 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 = 4.1550 ringgit)
($1 = 65.1050 Indian rupees)
($1 = 6.6345 Chinese yuan)
    

 (Reporting by Emily Chow; Editing by Sherry Jacob-Phillips)
  
 
 
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