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VEGOILS-Palm oil firms as Indonesia hikes maximum export tax

reuters.com · 06/09/2022 23:08
VEGOILS-Palm oil firms as Indonesia hikes maximum export tax

- Malaysian palm oil futures ticked up on Friday after Indonesia raised its maximum export tax, although the market is set for its first weekly decline in three in anticipation of the world's biggest producer's return to the export market.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange gained 31 ringgit, or 0.5%, to 6,241 ringgit ($1,419.38) a tonne during early trade.

Palm has declined 3% this week, also weighed by fresh COVID-19 curbs in parts of Shanghai. nL1N2XW01L

FUNDAMENTALS

* Indonesia Finance Ministry raised its maximum export tax for crude palm oil to $288 per tonne for when the government's reference price is set above $1,500 per tonne, a regulation document reviewed by Reuters showed. nJ9N2W4015

* China's commercial hub of Shanghai faces an unexpected round of mass COVID-19 testing for most residents this weekend - just 10 days after a city-wide lockdown was lifted - unsettling residents and raising concerns about the impact on business. nL8N2XW66L

* Dalian's most-active soyoil contract DBYcv1 fell 1%, while its palm oil contract DCPcv1 dropped 2.4%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.6%.

* The Malaysian Palm Oil Board and cargo surveyors are scheduled to release key supply and demand data later in the day.

* Palm oil may rise towards 6,423 ringgit per tonne, as it has found a support around 6,138 ringgit and climbed above a resistance at 6,233 ringgit, Reuters technical analyst Wang Tao said. TECH/C


MARKET NEWS

* Asian shares tracked Wall Street lower, while the dollar held on to its overnight gains, after rate hike guidance from the European Central Bank and upcoming U.S. inflation data unnerved investors. MKTS/GLOB

DATA/EVENTS (GMT)

0130 China PPI, CPI YY May

1230 US CPI MM, SA May

1400 US U Mich Sentiment Prelim June




($1 = 4.3970 ringgit)


(Reporting by Mei Mei Chu; Editing by Rashmi Aich)

((Meifong.chu@thomsonreuters.com))

For a table on Malaysian physical palm oil prices, including refined oil, Reuters Terminal users can double click on or type OILS/MY01. * To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in OILS/ASIA2 and press enter, or double click between the brackets.  * Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils                       OILS/ASIA1 Malaysian palm oil exports           SGSPALM1   CBOT soyoil futures                  0#BO:      CBOT soybean futures                 0#S:       Indian solvent                       SOLVENT01  Dalian Commodity Exchange            DC/MENU   Dalian soyoil futures                0#DBY:   Dalian refined palm oil futures      0#DCP:   Zhengzhou rapeseed oil               0#COI:   European edible oil prices/trades    OILS/E