Malaysia palm oil down despite data

Malaysia palm oil down despite data

KUALA LUMPUR (Reuters): Higher export figures for February failed to lift Malaysia's palm oil futures on Monday after talk that India planned to increase import duties on edible oils had hit the market.

"There are all kinds of rumors about the Indian duty. That's why the market went down despite good export figures by SGS," said one trader in Kuala Lumpur.

In November, India, which was Malaysia's main palm oil buyer in 2000, raised the duty on refined palm oil and RBD palm olein to 65 percent from 35 percent, and on refined oils sold in loose or bulk form to 45 percent from 35 percent.

The basic duty on crude palm oil for making vanaspati was raised to 25 percent from 15 percent. On crude palm oil for non- vanaspati making, it was raised to 55 percent from 45 percent.

On crude vegetable oil, except coconut and palm oils, it was increased to 35 percent from 25 percent.

But some analysts in India have said the country is unlikely to raise import taxes on edible oils in this week's budget due to an expected fall in the domestic oilseed crop after three hikes in duties failed to stem a flood of cheap imports.

Benchmark third-month May fell 15 ringgit to 757 ringgit ($199.21) a ton. Volume was 1,430 lots.

Societe Generale de Surveillance Malaysia Sdn Bhd said Malaysian palm oil exports in the first 25 days of February were at 717,737 tons against 627,662 in the same period in January.

SGS said it estimated the exports from the shipments of 124,285 tons of RBD palm oil, 285,447 tons of RBD palm olein and 60,795 tons of RBD palm stearin which it tracked during the period.

Other palm oil products accounted for 242,210 tons to make up the balance of the export figure, it said.

March (south and central) crude palm oil was offered at 725 ringgit a ton against bids of 720 ringgit, and trade was done at 720 to 725 for south and at 720 for central.

April (south and central) saw offers at 745 against bids of 740 and deals were reported at 740 to 742.50 for south and at 742.50 for central.

Among refined products, March RBD palm oil was offered at $207.50 a tonne FOB and April at $210.

There were offers for March RBD olein at $215 and April at $217.50.

March RBD palm stearin was offered at $182.50 and March palm fatty acid distillate at $165.