JAKARTA: Malaysian palm oil futures opened down on Wednesday, after China announced it would start an anti-dumping probe into canola imports from Canada and a drop in India’s palm oil imports.
India’s palm oil imports dive 27% as price rise dents demand, dealers say
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was down 35 ringgit, or 0.89%, to 3,896 ringgit ($895.43) a metric ton, as of 0231 GMT.
Fundamentals
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India’s palm oil imports in August fell 27% from a month ago on ample stocks and as negative margins prompted refiners to curtail purchases of the tropical oil, five dealers said on Tuesday.
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Lower purchases by the world’s biggest importer of vegetable oils could lead to higher stocks of palm oil in key producers Indonesia and Malaysia, weighing on benchmark futures.
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China said on Tuesday it plans to start an anti-dumping investigation into canola imports from Canada, after Ottawa moved to impose tariffs on Chinese electric vehicles, sending prices of domestic rapeseed oil futures to a one-month peak.
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Dalian’s most-active soyoil contract fell 0.26%, while its palm oil contract was down 1.65%. The Chicago Board of Trade dropped 0.24%.
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Palm oil tracks price movements in related oils as they compete for a share in the global vegetable oils market. * Malaysia’s August palm oil exports are seen at 1,376,412 tons, according to Amspec Agri.
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Exports of Malaysian palm oil products for August fell 9.9% to 1,445,442 tons from 1,604,578 tons shipped during July, cargo surveyor Intertek Testing Services said.
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The Malaysian ringgit, palm’s currency of trade, gained 0.41% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
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Oil prices fell on Wednesday, extending the previous day’s more than 4% plunge, on expectations the political dispute that has halted Libyan exports may be resolved and concerns over lower global demand growth.
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Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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Palm oil may drop to 3,864 ringgit per metric ton, as a double-top formed around 4,003 ringgit, according to Reuters’ technical analyst Wang Tao.
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