JAKARTA: Malaysian palm oil futures slipped on Monday, tracking weaker rival oils in the Dalian and Chicago markets. The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange lost 56 ringgit, or 1.2%, to 4,608 ringgit ($1,046.80) a metric ton in early trade.
Malaysian palm oil up on output concerns
Fundamentals
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Dalian’s most-active soyoil contract was down 0.32%, while its palm oil contract lost 1.79%. Soyoil prices on the Chicago Board of Trade were down 0.57%.
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Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
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Malaysian palm oil exports to China will “remain resilient” this year despite their premium over rival oils and Chinese consumers’ shifting buying patterns, deputy commodities minister Chan Foong Hin said.
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India is likely to raise import taxes on vegetable oils for the second time in less than six months to help support thousands of oilseed farmers reeling from a crash in domestic oilseed prices, two government sources said on Friday.
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Indian refiners have cancelled orders for 70,000 tons of crude palm oil scheduled for delivery between March and June because of a surge in benchmark Malaysian prices and negative refining margins in India, four trade sources said.
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Palm oil may fall to 4,583 ringgit per metric ton, following its failure to break resistance and a drop below a rising channel.
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