Palm hits 3-week low as rival oils dip, India weighs duty hike

Malaysian palm oil futures have fallen to a three-week low, driven by expectations of an import duty hike in India and weaker soyoil and palm oil contracts in the Dalian market. The benchmark contract for November delivery dropped by 1.18% to 3,855 ringgit per metric ton. Market rumors about an imminent import duty increase on all edible oils in India could further pressure prices. Additionally, declining soyoil prices have made palm oil less competitive. In response, Indonesia plans to lower export duties to enhance competitiveness and support farmer income, while Malaysia's palm oil stocks reached a six-month high in August due to increased production and slower exports.

Malaysian palm oil futures fell on Thursday to their lowest level in three weeks, on expectations of an import duty hike by top buyer India and in response to weakness in soyoil and palm oil contracts in the Dalian market. The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange was down 46 ringgit, or 1.18%, at 3,855 ringgit ($890.09) a metric ton by the midday break. “The whole market is buzzing with rumours about an import duty hike in India. People are expecting the hike on all edible oils soon, which could have a bigger impact on palm oil prices,” said a Mumbai-based trader. India is considering an increase in import taxes on vegetable oils to help protect farmers reeling from lower oilseed prices, two government sources told last month. Dalian’s most-active soyoil contract DBYcv1 fell 0.44%, while its palm oil contract DCPcv1 was down 0.28%. The Chicago Board of Trade soyoil BOc2 edged up 0.05%. Palm oil tracks price movements ...