KUALA LAMPUR: Malaysian palm oil futures dipped in the Friday session, retreating further from a six-month high, as strong export figures cushioned the dampening effects of a rise in export tax for October.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange slid 0.2 per cent to 2,861 ringgit ($683.31), easing further from a six-month high of 2,873 ringgit hit on Wednesday’s close.
Trading volumes stood at 67,952 lots of 25 tonnes each. The futures contract ended the week 3.6 per cent higher. A Kuala Lumpur-based futures trader said the increase of crude palm oil export tax for October from 5.5 per cent to 6 per cent weighed on the sentiment.
“Market is low today because the higher palm oil export tax is going to affect demand, especially from China, as they are restocking ahead of winter. This will have negative effects on prices in the midterm,” the trader said.
A second trader from Kuala Lumpur said firm export numbers lent some support to palm.
Published in Dawn, September 16th, 2017
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