KUALA LUMPUR: Malaysian palm oil futures edged up on Thursday, underpinned by higher export duties in large producer Indonesia, although a lack of fresh orders from importers kept a lid on prices.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange rose 18 ringgit, or 0.46%, to 3,890 ringgit ($836.38) by midday.
The contract was seen trading higher on expectations of stronger Malaysian palm oil export in November and also helped by Indonesia’s increase in palm oil export duties and levies, said Anilkumar Bagani, research head at Sunvin Group, a Mumbai-based vegetable oil brokerage.
However, a lack of fresh buying from key destinations due to higher stocks and weakness in demand is weighing on prices, Bagani said.
Indonesia, the world’s biggest palm oil producer and exporter, on Wednesday raised the crude palm oil (CPO) reference price for Dec. 1-Dec. 15 period at $795.14 per metric ton from the current $750.54 per ton, making Malaysian palm oil more attractive.
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