KUALA LUMPUR: Malaysian palm oil futures recovered on Monday to hit a five-month high after a cut in Indian import duty raised expectations there would be higher demand from the world’s biggest edible oil importer.

Benchmark palm oil futures for December on the Bursa Malaysia Derivatives Exchange rose 1.5 per cent to 2,715 ringgit ($658) a tonne on Monday after earlier touching a five-month high of 2,737 ringgit, the strongest since April 21.

Volume at the closing trade was 42,791 lots of 25 tonnes, below the 2015 daily average of 44,600. The contract fell 1.8pc on Friday, weighed down by lower demand and profit-taking.

India said on Friday it would lower its import duty on crude palm oil and refined vegetable oils by five percentage points to 7.5pc and 15pc, respectively, as part of efforts to curb food inflation.

Traders say the new rate was expected to boost palm exports, which have slowed this month due to weaker demand from India.

Palm oil shipments from Malaysia, the world’s second largest palm producer, fell nearly 16pc in the Sept 1-25 period from the corresponding period last month, data from cargo surveyor Intertek Testing Services and Societe Generale de Surveillance showed on Monday.

Published in Dawn, September 27th, 2016