JAKARTA: Malaysian palm oil futures closed flat on Tuesday, on the news that China will start an anti-dumping probe into canola imports from Canada and the fall of India’s palm oil imports.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was traded flat to close at 3,933 ringgit ($901.03) a metric ton on the closing.
China said on Tuesday it plans to start an anti-dumping investigation into canola imports from Canada, after Ottawa moved to impose tariffs on Chinese electric vehicles, sending prices of domestic rapeseed oil futures to a one-month peak.
China’s rapeseed meal futures prices jumped 6.03%.
India’s palm oil imports in August fell 27% from a month ago on ample stocks and as negative margins prompted refiners to curtail purchases of the tropical oil, five dealers said on Tuesday.
Lower purchases by the world’s biggest importer of vegetable oils could lead to higher stocks of palm oil in key producers Indonesia and Malaysia, weighing on benchmark futures.
“Overall, lots of ambiguity surrounding the market today. It’s a roller coaster day, juxtaposed between bearish externals from the news of anti dumping and India, and friendly internals of slower production pace and weaker ringgit,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.
The Malaysian ringgit, palm’s currency of trade, weakened 0.34% against the dollar. A weaker ringgit makes palm oil more attractive for foreign currency holders.
Dalian’s most-active soyoil contract rose 1.04%, while its palm oil contract was up 0.53%. The Chicago Board of Trade dropped 2.43%.
Palm oil tracks price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysia’s August palm oil exports are seen at 1,376,412 metric tons, according to Amspec Agri.
Exports of Malaysian palm oil products for August fell 9.9% to 1,445,442 metric tons from 1,604,578 metric tons shipped during July, cargo surveyor Intertek Testing Services said.
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