KUALA LUMPUR: Malaysian palm oil futures were steady on Monday, as traders weighed in higher export taxes in top producer Indonesia and expectations of rising supply.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange held its ground at 4,176 ringgit ($930.48) a tonne.

Indonesia will raise its crude palm oil reference price for Sept. 1-15 period, effectively increasing its export tax to $124 per tonne from the current $74 per tonne, senior economic ministry official Musdhalifah Machmud told Reuters.

The world’s biggest exporter also raised its 2022 biodiesel allocation to 11.03 million kilolitres amid expectations of rising demand in the fourth quarter while it extends an export levy waiver to maintain price stability.

The higher reference price and export tax added to buying momentum, but further strength was not seen as the market is expecting higher end-stocks and improving production in both Malaysia and Indonesia, a Kuala Lumpur-based trader said.

In related oils, Dalian’s most-active soyoil contract rose 0.4%, while its palm oil contract gained 0.3%. Soyoil prices on the Chicago Board of Trade were down 1.4%.

Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.

Palm is set for a short trading week, as the Malaysia bourse will be closed on Wednesday for a public holiday.