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KUALA LUMPUR, Jan 16 (Reuters) -Malaysian palm oil futures rose on Tuesday, driven by top importer India’s move to allow edible oil imports at a concessional duty for one more year. The benchmark palm oil contract FCPOc3 for April delivery on the Bursa Malaysia Derivatives Exchange rose 49 ringgit, or 1.29%, to 3,849 ringgit ($821.91) by midday.
India’s move to allow lower import duties on edible oils until March 2025, coupled with precariously lower production saw Malaysian palm oil prices rise, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. The lower import duty structure on crude palm oil, crude sunflower oil and crude soyoil in India, the world’s biggest importer of vegetable oil, was set to expire in March 2024.
Supramaniam said preliminary palm oil production estimates for Jan. 1-15 in Malaysia, the world’s second-largest producer, saw a double digit fall of about 17%.
“Thus prices will remain resilient and extend gains, especially with lower production in Q1.”
Dalian’s most-active soyoil contract DBYcv1 fell 0.16%, while its palm oil contract DCPcv1 added 0.52%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.08%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for Jan. 1-15 were estimated to be down 2.6% to 604,474 tons from a month earlier, independent inspection company AmSpec Agri Malaysia said on Monday. Data from cargo surveyor Intertek Testing Services showed that exports for Jan. 1-15 rose 6.5% to 629,918 tons.
The ringgit MYR=, palm’s currency of trade, fell 0.36% against the dollar, making the commodity less expensive for buyers holding foreign currency.
Oil prices were mixed on Tuesday, after losses in the previous session, as markets weighed broad economic concerns against weather-related U.S. demand-supply issues and continued tensions in the Middle East that led to more tanker diversions. O/R Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. Palm oil may fall to 3,768 ringgit per ton, following its failure to break resistance at 3,868 ringgit, Reuters technical analyst Wang Tao said. TECH/C