KL palm oil climbs on Indian shortage<\/p>\n
KUALA LUMPUR (Reuters): Malaysia's crude palm oil futures
\ntouched the 1,085 ringgit major resistance level on Thursday on
\ntalk that India is facing an edible oil shortage and may cut palm
\noil import duties, traders said.<\/p>\n
In Indonesia, the world's second largest palm oil producer
\nafter Malaysia, such talk aroused demand from European buyers who
\nbelieved they needed to stock up before India, the world's
\nlargest edible oil importer, came to the market.<\/p>\n
At the close, the benchmark November futures contract ended up
\n14 ringgit at 1,075 ringgit ($282.89) a ton after trading as high
\nas 1,085 ringgit. Volume was 1,834 lots.<\/p>\n
\"We've got more demand from European buyers because of the
\nIndian talk,\" said one trader in Jakarta.<\/p>\n
\"We heard that one edible oil importer in south India is
\nfacing a shortage in oil and is ready to buy RBD palm olein at
\nhigh prices. But I don't hear more details,\" he added.<\/p>\n
But some traders said a number of major importers in India
\nwere intentionally holding back palm oil stocks at local ports to
\nstir up speculation the country was facing a shortage of oil and
\nmay cut palm oil import duties.<\/p>\n
\"These guys believe that India will reduce the base prices and
\nimport duties in the first week of September. If that happens,
\nthose importers can take out that oil from the tanks and pay less
\nduties,\" said one trader in Kuala Lumpur.<\/p>\n
\"Not only are they holding their stocks at customs bonded
\ntanks, they are also buying oil at the domestic market just to
\ncreate fear there is a shortage,\" he added.<\/p>\n
In February, India imposed its heaviest-ever duty of 75
\npercent on crude palm oil and 85 percent on refined palm oil.<\/p>\n
In August, India fixed the base import price of crude palm
\nolein at $357 a ton. It means any importer will have to pay duty
\nassessed on an import price of $357 a ton for the oil no matter
\nwhat its purchase price.<\/p>\n
India had earlier fixed the base import price of crude palm
\noil at $337 a ton and RBD palm olein at $372 a ton.<\/p>\n
Also last month, talk circulated in the Malaysian market that
\nsome local refiners had shifted their palm oil to joint ventures
\nin Singapore, India and China due to swelling stocks and a
\nslowdown in demand.<\/p>\n
Ot the physical side, September crude palm oil for southern
\nand central regions were offered at 1,080 ringgit a ton against
\nbids at 1,075. There were trades at 1,075 to 1,082.50 for both
\nsides.<\/p>\n
Among refined products, September RBD palm oil was offered at
\n$297.50 a ton, October $300 and November\/December at $302.50.<\/p>\n
Offers for September RBD olein were at $312.50, October at
\n$315 and November\/December at $317.50.<\/p>\n
September\/October RBD palm stearin was offered at $255 a ton
\nand September\/October palm acid distillate was offered at $205.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kl-palm-oil-climbs-on-indian-shortage-1447893297",
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