Login ID:
Password:
Partner Login
Contact Us : 07666977977

Increase In Import Duty Will Push RBD Palmolein Prices Higher Next Week

12 Aug 2017 5:17 pm
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai (commoditiescontrol) -


Malaysian Palm Oil Futures
Malaysian palm oil futures during the week ends up by 2.8 percent at MYR 2,685/tonne, reaching its highest levels in nearly two weeks.
Earlier in the week, MPOB data showed Malaysia palm oil production surged to 21 months high in July after notching an impressive 21% rise from the previous month and 15.2% higher than same time last year. Average production rise was estimated at 14%. July production was expected to bounce back from sub-par output in June due to working days lost to Ramadan holidays.
Meanwhile, exports widely expected to come between 4 to 5% higher, came at much lower at 1.30% to 1.398 million tons, driving end-month stocks to 15 months high or 10% above the average estimate to 1.784 million tons.
Malaysia peak production are from August, September and October, focus will now be on export demand absorbing the rise in production. Malaysia 2017 total production is expected to reach 19.50 million tons from 17.32 million or up 12.60%.
But this did not stop CPO Futures from falling, instead prices defied expectation and moved sharply as traders are anticipating that palm oil production to decline in August month.
South Peninsular Palm Oil Association(SPOMA) pegged palm production for 1-10 August lower by 4.95 percent which improved the market sentiment and helped Malaysian palm oil futures to close higher during the week.


Domestic RBD Palmolein Scenario
During the week, demand of RBD palmolein was very good in domestic market ahead of the Janmashtami Festival coupled with strong Malaysian Palm Oil Futures. Wholesale traders bought RBD Palmolein in bulk quanitites as the price Gap Soyoil and RBD was wide, shifting the consumption demand to the later.


Further, the Indian government yesterday increased the import duty on palm oil by 5% to 12.50% and on RBD palmolein from 15% to 25% increasing the differential in duty by 10 percentage points to encourage local processing, due to which the prices of RBD palmolein increased sharply. RBD palmolein prices gained by Rs 33 at Kakinada port to trade at Rs 555/10kg.

"The decision will help both farmers and the local crushing industry which had to bear the brunt of higher oilseed stocks, lower domestic prices and surging supplies from major producers," said Sandeep Bajoria, chief executive of the Sunvin group, a leading vegetable oil importer.

New Delhi spends about $10 billion a year to import palm oil from Malaysia and Indonesia and relatively smaller quantities of soyoil from Brazil and Argentina.

Large inventories and lower prices have fomented a wave of protests by farmers in the big agrarian states of Maharashtra and Madhya Pradesh, ruled by Prime Minister Narendra Modi's Bharatiya Janata Party.





NEXT WEEK: RBD palmolein prices are likely to trade higher on account of good demand and increase in import duty.

(By Commoditiescontrol Bureau; +91-22-40015516)


N       
  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated
0.0

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  
   

Top | Post Comment  

Latest Special Reports
Spot Mustard Seed To Trade Range Bound Next Week
Spot RBD PAlmolein To Trade Higher Next Week
Spot Soybean To Trade Steady To Negative Next Week
Spot RBD Palmolein To Trade Higher Next Week
Spot Mustard Seed To Trade Steady Next Week
more
Top 5 News
India Cotton Shipments Up 5%, Y/y, 2016/17
Technical: Chana Indore Spot : Expect Lower Range To Be...
Technical: Turmeric Nizamabad Spot : Correction Is For ...
Technical: Red Chilli Guntur Spot : New Rising Leg Resu...
Weekly: Raw Pulses Trade Mix; Slow Demand In Dals
Top 5 Market Commentary
DJ Commodities Corner: Miners Play Catch-Up to Gold and...
DJ This Week: Preview -- Barron's
DJ An Early Call on Gold -- Barron's
DJ Nymex/Comex Globex Metals Futures Hourly Price Updat...
DJ Miners Play Catch-Up to Gold and Silver Prices -- Ba...
Copyright © CC Commodity Info Services LLP. All rights reserved.