Oct. 16 (Bloomberg) -- Malaysia, the world’s second-largest producer, left the tax on exports of crude palm oil unchanged for a ninth month, helping boost shipments and compete with the biggest supplier Indonesia.
Cargoes will be taxed at 4.5 percent in November, according to a customs statement cited by Balu Nambiappan, the Malaysian Palm Oil Board’s head of trade development. The reference price was set at 2,303.06 ringgit ($726) a metric ton, he said in a phone interview. The tariff was zero in January and February before rising to 4.5 percent in March.
Exports from Malaysia climbed for a fourth month in September, as reduced supplies of substitutes boosted demand for the most-consumed cooking oil, board data showed. Shipments from Indonesia advanced last month for the first time since May, according to the country’s palm oil association. Indonesia, which last month set its export tax at 9 percent for October, may announce next week the levy for November.
“Malaysia’s crude palm oil has an advantage compared to Indonesia’s” as the tax remains lower, said Alan Lim Seong Chun, an analyst at Kenanga Investment Bank Bhd. “This should bode well for Malaysia’s exports.”
Shipments gained 6.6 percent to 781,043 tons in the first 15 days of October from the same period a month earlier, Intertek said today. Sales rose 5.2 percent to 1.61 million tons last month, the board said Oct. 10.
Exports from Indonesia gained 11 percent to 1.64 million tons in September from a month earlier, the Indonesian Palm Oil Association said Oct. 14.
Futures for delivery in December rose 0.6 percent to 2,376 ringgit a ton on the Malaysia Derivatives Exchange at the midday close in Kuala Lumpur today.
--With assistance from Yoga Rusmana in Jakarta. Editors: Ovais Subhani, Jarrett Banks