Palm oil gains on stronger crude, soyoil

Malaysia on Friday said it would fully exempt palm oil from export duty this year, in a move that traders estimated could boost shipments of the edible oil by 1 million tonnes in the second half of the year.

Agencies
The Malaysian Palm Oil Board is scheduled to release May supply and demand data on Wednesday. A Reuters survey has pegged stockpiles to surge 9.9% from the previous month.
KUALA LUMPUR: Malaysian palm oil futures firmed on Tuesday as trading resumed after a long weekend, with stronger crude oil and rival soyoil supporting the market ahead of the official May supply and demand data.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose 20 ringgit, or 0.85%, to 2368 ringgit ($555.87) a tonne in early trade. It rose 2.4% last week in its fourth straight weekly gain.

Malaysia on Friday said it would fully exempt palm oil from export duty this year, in a move that traders estimated could boost shipments of the edible oil by 1 million tonnes in the second half of the year.


The Malaysian Palm Oil Board is scheduled to release May supply and demand data on Wednesday. A Reuters survey has pegged stockpiles to surge 9.9% from the previous month.

FUNDAMENTALS
India is considering raising import taxes on edible oils possibly by 5% as it seeks to become self-reliant by boosting local oilseed production with the help of tax revenues.

Crude oil prices climbed as markets broadly rose on growing confidence in a global recovery with pandemic lockdowns easing.
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Stronger crude makes palm a more attractive option for biodiesel feedstock.

Dalian's most-active soyoil contract gained 0.32%, while its palm oil contract rose 0.53%. Soyoil prices on the Chicago Board of Trade were up 0.04%.

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

Palm oil may fall to 2,291 ringgit per tonne, as it has completed a five-wave cycle from the May 6 low of 1,939 ringgit, Reuters technical analyst Wang Tao said.
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MARKET NEWS
Asian stocks rallied for their ninth straight day as the lifting of coronavirus lockdowns in many countries fed investor hopes of a relatively quick global economic recovery.
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