KUALA LUMPUR: Malaysian palm oil futures rose over one per cent on Wednesday before paring some gains, lifted by higher overnight prices of soyoil on the Chicago Board of Trade (CBOT) and a technical correction.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was last up 0.3pc at 2,187 ringgit ($521.96) per tonne at the close of trade.

It earlier rose as much as 1.7pc to an intraday top of 2,217 ringgit.

A Kuala Lumpur-based futures trader said overnight gains in US soyoil provided support to palm prices, but added that the ringgit’s strength could limit palm’s increases.

Another trader said the market was also up on a technical correction after declining over 2pc in trade on Tuesday, its sharpest daily fall in four months.

India imposes 5pc tax Meanwhile, India has imposed an extra 5pc tax on vegetable oil imports from Malaysia for 180 days, a government statement said on Wednesday, to help boost the country’s stagnating oilseed production.

India is the world’s biggest importer of vegetable oils, buying nearly $10 billion worth a year, its biggest import after crude oil and gold.

Published in Dawn, September 5th, 2019