NEW DELHI, May 25 (Commoditiescontrol) - Malaysian palm oil futures eased nearly 1.5 percent on Wednesday, snapping their 3-day winning momentum, weighed down by demand worries after top buyer India allowed duty-free imports of competing soy and sunflower oils.
The August benchmark crude palm oil contract on the Bursa Malaysia Derivatives Exchange (BMD), was down Ringgit 93 or 1.43 percent at Ringgit 6,389 ($1,454.36) per tonne by the close, after moving in the range of Ringgit 6,524 and Ringgit 6,370 per tonne.
India's palm oil imports could drop by nearly a fifth as now cheaper soyoil takes more market share, following Indonesia's curbs on palm oil exports and New Delhi allowing duty-free imports of soyoil, dealers said.
India has allowed duty-free imports of 2 million tonnes each of crude soyoil and crude sunflower oil for the current and the next fiscal year to March 2024 as part of efforts to keep a lid on local prices.
Indonesia will determine palm oil producers' mandatory domestic sales volume based on their refining capacity and local demand for cooking oil, a trade ministry regulation document showed on Wednesday, as the government plans an industry audit.
In second-largest producer Malaysia, exports for May 1-25 rose 22.54 percent from the same period in April 1-25, according to independent inspection company AmSpec Agri Malaysia.
Globally, Dalian's most-active soyoil contract rose 0.5 percent, while its palm oil contract gained 1.1 percent. Soyoil prices on the Chicago Board of Trade (CBOT) were fell 0.6 percent in electronic trade today.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
(By Commoditiescontrol Bureau)
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