Indonesian palm oil rose almost four percent on Monday, supported by gains in Malaysia and despite government efforts to curb rising cooking oil prices. In Jakarta, cooking oil traded at 7,400 rupiah ($0.820) a kg, up 3.85 percent from 7,125 rupiah on Friday, about two weeks after the government raised the export tax for crude palm oil to 6.5 percent from 1.5 percent and palm oil products to 6.5 percent from 0.3 percent.
The increase was aimed at stabilising domestic prices, which are up about 30 percent since the start of the year because of surging global prices. "The raise in export tax does not really affect cooking oil prices. When global prices are up, we will be lifted as well," said a cooking oil trader in Jakarta. Prices were also lifted by Malaysian crude palm futures on rising prices of rival soybean oil and fresh buying.
On the export market, crude palm oil for July shipment was offered at $750 a tonne free on board Belawan, up 4.5 percent from $717.5 on Thursday. Buyers did not make any bids.
Buyers offered August shipment at $740, up 4.2 percent from $710 on Thursday, and buyers bid at $730 with no deals reported. The state marketing centre in Jakarta, which sells palm oil from state plantations, failed to sell 2,000 tonnes of crude palm oil due to low bids. There were no auctions in North Sumatra's Medan on Friday and Monday. "Players waited for fresh leads and kept monitoring Malaysian crude palm oil," said a trader in Medan.
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