Palm oil dropped on the European vegetable oils market on Friday after Malaysian futures eased sharply because India raised import taxes. India, the world's biggest edible oil importer, raised its import tax on crude palm oil to 44 percent from 30 percent and increased tax on refined palm oil to 54 percent from 40 percent, in a bid to support local farmers.
Asking prices for palm oil were between $5 and $17.50 a tonne down from Thursday after Malaysian palm oil futures closed between 39 and 78 ringgit per tonne lower. At 1700 GMT, CBOT soyaoil futures were between 0.07 and 0.22 cents per lb higher on technical buying as Chicago traders sold soyameal futures and bought back soyaoil contracts. A mild rebound in energy markets also underpinned soyaoil futures.
EU rapeoil was offered between five and seven euros per tonne down, also in reaction to India's tax increases on vegetable oil imports. A weaker dollar and easier rapeseed futures, on technicals, also added to the weakness in rapeoil. Lauric oils were mostly offered between $40 and $65 a tonne down, tracking losses in palm oil and sellers lowered priced further in a bid to find buyers, which still were hard to find. The spread between coconut oil and the cheaper palmkernel oil was $125 a tonne for April/May shipment onwards.
"Asian markets are expected to stay calm during most of next week as many players are absent, visiting the annual Price Outlook Conference in Kuala Lumpur," one broker said.
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