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

Malaysian palm oil futures have fallen to a three-week low, influenced by expectations of an import duty hike in India and weaker soyoil and palm oil contracts in the Dalian market. The November delivery benchmark dropped by 1.36% to 3,848 ringgit per metric ton. Rumors of India's import duty increase, aimed at protecting local farmers, and a significant drop in India's palm oil imports in August due to ample domestic stocks and negative margins, have pressured prices. Additionally, Indonesia plans to reduce export duties to enhance competitiveness and farmers' income, while Malaysia's palm oil stocks hit 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 closeddown 53 ringgit, or 1.36%, at 3,848 ringgit ($888.07) a metric ton. “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 increasing import taxes on vegetable oils to help protect farmers reeling from lower oilseed prices, two government sources told Reuters last month. India’s palm oil imports in August fell more than a quarter from a month ago, primarily driven by sufficient domestic stocks and negative margins that discouraged refiners from purchasing more of the tropical ...