SINGAPORE: Malaysian palm oil futures eased on Friday on a rise in January stocks, although stronger exports and higher Indonesian export taxes helped the benchmark contract log a weekly gain.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange slid 39 ringgit, or 0.98%, to 3,934 ringgit ($908.75) a tonne by the end of trading on Friday, down for a second consecutive day.
The benchmark climbed 2.07% this week, its third weekly rise in four.
“The exports are showing signs of recovery and with Indonesia increasing their taxes and levies, customers could actually turn their attention towards Malaysian cargoes,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
The world’s top palm oil exporter Indonesia plans to set the crude palm oil reference price for Feb. 16-28 higher at $880.03 per tonne, making it less competitive to smaller rival Malaysia.
Exports from Malaysia during Feb. 1-10 rose 32.51% from the same period in January, independent inspection company AmSpec Agri Malaysia said on Friday.
“Malaysian palm oil exports rose during the first 10 days of February thanks to lower prices and renewed purchases from India after the confirmation of the extension of refined palm oil import allowances under the free category,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
Palm edges lower on weaker rival oils, eyes weekly gain
Malaysia’s palm oil inventories at end-January rose for the first time in three months, up 3.27% from the month before to 2.27 million tonnes, according to Malaysia Palm Oil Board (MPOB) data.
The rise was due to a surge in imports that helped offset a 14.73% slump in production and a near 23% drop in exports, MPOB data showed.
In related oils, Dalian’s most-active soyoil contract fell 1.83%, while its palm oil contract gave up 2.24%. Soyoil prices on the Chicago Board of Trade gained 0.64%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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