India duty hits Malaysia palm oil

India duty hits Malaysia palm oil

KUALA LUMPUR (Reuters): Malaysia's palm oil futures closed lower on Tuesday on news that India, one of Malaysia's main buyers, had increased the basic duty on edible oils to check a flood of cheap imports.

But some traders said the falls were limited because such a move had been anticipated. Others said a stronger reaction was likely on Wednesday because the market was still digesting the news.

The benchmark third-month February futures contract ended down seven ringgit at 860 ringgit ($226.3) a ton after trading as high as 870. Market volume stood at 1,630 lots.

November (south and central) crude palm oil was offered at 825 ringgit a ton against bids of 820 and trade at 820 to 825.

December (south and central) saw offers at 845 ringgit and bids at 840, with trade reported at 840 to 850.

Among refined products, December RBD palm oil was offered at $237.50 a ton FOB and January at $242.50.

There were offers for December RBD palm olein at $255 and January at $262.50.

December RBD palm stearin was offered at $197.50 and December palm fatty acid distillate at $142.50.