Palm oil rallied to the highest level in almost three months on speculation that exports from Malaysia, the second-largest producer, will probably increase after Indonesia set higher taxes on February shipments.
The contract for delivery in April climbed 1.4 percent to 2,510 ringgit ($813) a metric ton on the Malaysia Derivatives Exchange, the highest price at close for the most-active contract since Nov. 1. Futures, 3 percent higher in January, are heading for the biggest monthly advance since March.
Indonesia, the biggest producer, will raise taxes on crude exports to 9 percent for February from 7.5 percent in January, the Trade Ministry said Jan. 28. Malaysia has said it will maintain a zero-tariff policy for a second month in February to help clear record stockpiles of the oil used in foods and fuels.
“The Indonesian tax increase will benefit Malaysian palm,” said Gnanasekar Thiagarajan, a director at Mumbai-based Commtrendz Risk Management Services Pvt. “There’s zero export tax in Malaysia, so there’ll be incentive for Malaysian exporters to export more.”
China’s oilseed imports may climb to a record 65.3 million tons in the year through September 2013 from 63.1 million tons in 2011-2012, while vegetable oil and fat imports may gain to 10.8 million tons from 9.98 million tons, Oil World, the Hamburg, Germany-based researcher wrote in a report yesterday.
Refined palm oil for delivery in September advanced 0.8 percent to close at 7,072 yuan ($1,137) a ton on the Dalian Commodity Exchange. Soybean oil for delivery in the same month increased 0.6 percent to end at 8,734 yuan a ton.
Soybeans for March delivery climbed 0.4 percent to $14.575 a bushel on the Chicago Board of Trade. Soybean oil for March delivery gained 0.4 percent to 51.92 cents a pound.
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