Lacks of incentives pulls down palm oil

Lacks of incentives pulls down palm oil

KUALA LUMPUR (Reuters): The absence of fresh incentives dragged down Malaysia's palm oil futures on Thursday, traders said.

News that the monsoon in India was progressing normally was likely to kill off hopes of a possible cut in palm oil import duty.

A weather official said India's southwest monsoon rains, vital to the country's economic performance, are progressing normally and are likely to hit the southern coast on schedule early next month.

Traders speculated prospects of good monsoon rains would make it difficult for India to respond to Malaysia's request for a cut in palm oil import duties to 45 percent.

"India will not cut in import duties. India has to take care of its own farmers," one said.

Benchmark August futures closed down 11 ringgit at 759 ringgit ($199.74) a ton. Volume was 1,102 lots.

On the physical side, May crude palm oil for the southern and central regions was offered at 737.50 ringgit a ton against bids at 732.50. It traded at 735 to 740 for both regions.

June south and central crude palm oil was offered at 745 ringgit against bids at 740, and traded at 740 for both regions.