KUALA LUMPUR: Malaysian palm oil futures closed at a two-week peak on Tuesday, reversing early losses, buoyed by stronger soyaoil and hopes of higher June export data. The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed up 46 ringgit, or 1.3%, to 3,552 ringgit ($855.90) a tonne.
Traders are awaiting June 1-30 export data from cargo surveyors due on Wednesday. Market talks pegged shipments from Malaysia to rise 6.5% month-on-month. Prices fell to an intraday low of 1.3% earlier in the session on some adjustments in Malaysia's crude palm oil futures to Indonesia's prices after confirmation of a reduction in export levy from July, a Kuala Lumpur-based trader said.
Indonesia will impose new palm oil export levies starting on July 2, the Estate Crop Fund Agency said on Tuesday. The world's top palm oil exporter last week said it will change its levy structure for palm oil exports, cutting the ceiling rate for crude palm oil levies from $255 per tonne to $175 per tonne.
"The downward revision should not raise any concerns on the Indonesian government's ability to continue supporting the biodiesel mandate," analysts from UOB Kay Hian said in a note. Upstream players will get some relief from the lower export levy and see higher net realised selling prices, hence, better earnings for the second half of 2021, analysts said.
Dalian's most-active soyaoil contract gained 0.5%, while its palm oil contract gained 1.5%. Soyaoil prices on the Chicago Board of Trade were up 0.6%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.