Palm oil climbed for a second day on speculation that shipments from Malaysia, the world’s second- biggest producer, may rebound after announcing a zero export tax for a second month to trim record inventories.
The contract for delivery in April climbed as much as 1.2 percent to 2,428 ringgit ($804) a metric ton on the Malaysia Derivatives Exchange, before trading at 2,424 ringgit at 12:11 p.m. in Kuala Lumpur. Futures rose 1.4 percent last week, the first such advance in three weeks.
Exports from Malaysia, the biggest producer after Indonesia, fell 17 percent to 830,830 tons in the first 20 days of this month from from a month earlier, according to surveyor Intertek. This compares with a 25 percent decline in the first 10 days of January and a 21 percent drop in the first 15 days, Intertek estimates show. Malaysia will maintain the zero tariff for crude palm oil exports in February to draw down inventories, which stood at 2.63 million tons in December.
“Buyers may be returning to the market after the year-end holiday,” said Ker Chung Yang, an analyst at Phillip Futures Pte Ltd. in Singapore. “They’re slowly getting accommodated to the new rules in China and the new tax in India.”
India will impose a tax of 2.5 percent on crude palm and soybean oil imports, the Agriculture Ministry said Jan. 17. China’s quality watchdog, the General Administration of Quality Supervision, Inspection and Quarantine, toughened inspections on imports from Jan. 1 to improve food safety.
Refined palm oil for delivery in May was little changed at 6,748 yuan ($1,085) a ton on the Dalian Commodity Exchange. Soybean oil for September rose 0.6 percent to 8,838 yuan a ton.
To contact the reporter on this story: Ranjeetha Pakiam in Kuala Lumpur at email@example.com
To contact the editor responsible for this story: James Poole at firstname.lastname@example.org