(For physical price assessments, see MPOI1.)
Dec. 16 (Bloomberg) -- Palm oil advanced for the first time in six days as Malaysia left the tax on exports unchanged for January, boosting prospects for shipments from the world’s second-largest producer.
The contract for delivery in February climbed 0.2 percent to 2,568 ringgit ($792) a metric ton on the Bursa Malaysia Derivatives, the first increase since Dec. 6. Futures lost 4 percent last week, snapping four weeks of gains.
The tax on crude palm oil exports will be left at 5 percent for January, Malaysia’s Customs Department said. Indonesia, the top supplier, last month raised its export tax to 12 percent for December from 9 percent in November. Shipments from Malaysia fell 14 percent to 640,240 tons in the first 15 days of December from a month earlier, surveyor Intertek said today.
“There were expectations that the export tax maybe increased,” said Suresh Nair, executive director for commodities at Admisi Commodities Pvt. Ltd. in Mumbai. “But it was kept unchanged and that is good news for the market as it makes Malaysian exports more competitive.”
Soybean oil for March delivery declined 0.4 percent to 40.06 cents a pound on the Chicago Board of Trade. Soybeans for delivery in March lost 0.3 percent to $13.10 a bushel.
Refined palm oil for May delivery fell 0.4 percent to close at 6,036 yuan ($994) a ton on the Dalian Commodity Exchange. Soybean oil dropped 0.5 percent to end at 7,006 yuan.
--Editor: Thomas Kutty Abraham