KUALA LUMPUR: Malaysian palm oil futures fell on Thursday by their most in nearly two weeks after top producer Indonesia began a scheme aimed at accelerating exports as it gears up to re-enter the global market.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slid 145 ringgit, or 2.24%, to 6,322 ringgit ($1,439.44) a tonne by the midday break, down for a second straight session.
The contract was pressured by easing concerns over Indonesia's export outlook, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Indonesia launched an export acceleration scheme effective immediately, aimed at shipping at least 1 million tonnes of crude palm oil and derivatives following a recent ban, according to a trade ministry regulation made public on Thursday.
Palm oil may test support at 6,386 ringgit
The world's biggest exporter is also lowering the maximum rate of export tax and levy for crude palm oil to $488 per tonne from $575 per tonne to encourage shipments.
Investors are now awaiting the Malaysian Palm Oil Board's May supply and demand data, as well as cargo surveyors' early June export numbers, due Friday.
Dalian's most-active soyoil contract fell 1.8%, while its palm oil contract dropped 3.9%.
Soyoil prices on the Chicago Board of Trade were down 0.8%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil remains neutral in a range of 6,423-6,577 ringgit per tonne, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.
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