Indonesian palm oil prices were mixed on Thursday, unsettled by a drop in Malaysian futures, driven by expectations Jakarta will cut taxes on palm oil exports.At the state marketing centre in Jakarta, crude palm oil were sold at 9,965 rupiah ($1.08) a kg, unchanged from Wednesday.
Producers in North Sumatra's Medan sold crude palm oil at 9,950 rupiah a kg, a touch down from 9,960 rupiah on Wednesday with 2,000 tonnes changing hands. "Malaysia was slightly down today, pushing down our local prices. The market wasn't so active as players were waiting for the new palm oil taxes," said a crude palm oil trader in Medan where the key port for palm oil export is located.
Indonesia, the world's biggest palm oil producer, adjusts the palm oil export tax every month based on the movement in international prices. For the month of April, crude palm oil is subject to a 20 percent export tax, double the 10 percent in March. But dealers expect the government to announce soon a cut in the palm oil export tax for May to 15 percent as palm oil prices in international market have eased.
Malaysian crude palm oil futures fell 1.2 percent on Thursday on expectations Indonesia will cut its export tax on the vegetable oil amid growing fears demand was struggling to gain momentum. By the midday break, the benchmark July contract had fallen 43 ringgit to 3,507 ringgit ($1,119) per tonne. Other traded months fell between 28 and 30 ringgit.
In Jakarta, prices of refined, bleached, deodorised (RBD) palm olein - used as cooking oil - rose nearly 2 percent to 10,100 a kg from 9,900-9,925 rupiah on Wednesday, defying a fall in Malaysia. "Cooking oil prices were up, deterring buyers," said a cooking oil trader in the capital.There was no price quotation at the export front, reflecting quiet demand.
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