AIRLINK 207.13 Increased By ▲ 6.84 (3.42%)
BOP 10.35 Decreased By ▼ -0.14 (-1.33%)
CNERGY 7.19 Decreased By ▼ -0.02 (-0.28%)
FCCL 34.99 Increased By ▲ 0.05 (0.14%)
FFL 17.13 Decreased By ▼ -0.29 (-1.66%)
FLYNG 25.10 Increased By ▲ 0.25 (1.01%)
HUBC 129.20 Increased By ▲ 1.39 (1.09%)
HUMNL 14.25 Increased By ▲ 0.44 (3.19%)
KEL 4.95 Decreased By ▼ -0.05 (-1%)
KOSM 6.87 Decreased By ▼ -0.16 (-2.28%)
MLCF 44.81 Increased By ▲ 0.19 (0.43%)
OGDC 221.00 Decreased By ▼ -1.15 (-0.52%)
PACE 7.19 Decreased By ▼ -0.23 (-3.1%)
PAEL 42.80 No Change ▼ 0.00 (0%)
PIAHCLA 17.23 Decreased By ▼ -0.16 (-0.92%)
PIBTL 8.48 Decreased By ▼ -0.03 (-0.35%)
POWER 9.15 No Change ▼ 0.00 (0%)
PPL 191.00 Decreased By ▼ -1.73 (-0.9%)
PRL 43.30 Increased By ▲ 1.80 (4.34%)
PTC 25.25 Increased By ▲ 0.81 (3.31%)
SEARL 103.10 Increased By ▲ 1.83 (1.81%)
SILK 1.03 Decreased By ▼ -0.02 (-1.9%)
SSGC 43.00 Decreased By ▼ -0.87 (-1.98%)
SYM 18.56 Decreased By ▼ -0.20 (-1.07%)
TELE 9.32 Decreased By ▼ -0.22 (-2.31%)
TPLP 13.32 Increased By ▲ 0.24 (1.83%)
TRG 70.25 Increased By ▲ 4.06 (6.13%)
WAVESAPP 10.51 Decreased By ▼ -0.02 (-0.19%)
WTL 1.83 Increased By ▲ 0.05 (2.81%)
YOUW 4.04 No Change ▼ 0.00 (0%)
BR100 12,072 Increased By 32.6 (0.27%)
BR30 36,889 Increased By 200.2 (0.55%)
KSE100 114,668 Decreased By -135.9 (-0.12%)
KSE30 35,996 Decreased By -106 (-0.29%)
Markets

Palm oil falls 2pc as export pace slows, Indonesia taxes weigh

  • Indonesia's June export taxes higher at $183 per tonne.
  • Malaysian exports in May rise 1.6% m/m.
  • Malaysia to enter two-week lockdown starting Tuesday.
Published May 31, 2021

KUALA LUMPUR: Malaysian palm oil futures fell over 2% on Monday as the pace of exports slowed and Indonesia raised its export taxes for June, with a nationwide lockdown in Malaysia further dampening sentiment.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed down 91 ringgit, or 2.27%, at 3,919 ringgit ($950.75) a tonne, its second daily decline in three.

The contract had fallen to an intraday low of 3.4% after an Indonesian government official said the country would set its crude palm oil reference price higher in June at $1,223.9 a tonne.

This means Indonesia's export taxes for crude palm oil in June will be higher at $183 per tonne, while export levies for the edible oil will be unchanged at $255 per tonne.

The market also fell on weakness in soybean oil last Friday and further selling could be due to slowing exports, a Kuala Lumpur-based trader said.

Malaysian palm oil exports in May ticked up 1.6% from April to 1.42 million tonnes, slowing from a 37% monthly rise logged during May 1-10, according to data from cargo surveyors Amspec Agri.

Malaysia will commence a two-week nationwide lockdown starting Tuesday that will see the closure of non-essential businesses and services to control the pandemic.

Palm oil plantations will be allowed to operate, while the manufacturing sector is permitted to operate with reduced capacity.

"The palm market is supported by weak output, limited by localized adverse weather and less working days in May versus April," Refinitiv Agriculture Research said in a note.

Dalian's most-active soyoil contract fell 0.2%, while its palm oil contract declined 0.5%. The Chicago Board of Trade was closed for a public holiday.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Comments

Comments are closed.