Palm Oil Snaps Four-Day Rally After Indonesia Cuts Export Tax
The contract for July delivery declined as much as 1 percent to 2,293 ringgit ($757) a metric ton on the Bursa Malaysia Derivatives and ended the morning session at 2,296 ringgit in Kuala Lumpur. Futures gained 0.9 percent last week, the first such advance since the five days ended March 22.
Indonesia cut the tax on crude palm oil exports to 9 percent in May from 10.5 percent this month, Bachrul Chairi, director general for foreign trade at the Trade Ministry, said April 26. Malaysia will keep the tax unchanged at 4.5 percent. Exports from Malaysia increased 2.7 percent to 1.08 million tons in the first 25 days of this month from the same period in March, surveyor Societe Generale de Surveillance said April 25.
“Malaysia may lose out on the export tax front,” said Ker Chung Yang, an analyst at Phillip Futures Pte. in Singapore. “Export numbers for the next couple of months are going to be not that impressive. The high stockpile story is going to haunt us again.”
Reserves have dropped 17 percent to 2.17 million tons in March from a record 2.63 million tons in December, according to Malaysian Palm Oil Board data.
Soybean oil for July delivery gained 0.5 percent to 49.78 cents a pound on the Chicago Board of Trade, while soybeans advanced 0.4 percent to $13.865 a bushel.
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