Palm climbs over 3% on Indian demand, duty waiver expectations
KUALA LUMPUR: Malaysian palm oil futures climbed more than 3% on Thursday, recovering from two straight sessions of losses, as robust demand from top buyer India outweighed concerns over rising stockpiles, which the market had already priced in. The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 139 ringgit, or 3.07%, to 4,663 ringgit…
Malaysian palm oil futures surged over 3% on Thursday, driven by strong demand from India and expectations of a duty waiver, as the market recovered from recent losses. The December delivery price for the benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange rose 139 ringgit, or 3.07%, to 4,663 ringgit ($1,140.66) per metric ton.
India acquired 150,000 tons of crude palm oil within three days this week, taking advantage of disrupted sunflower oil shipments from the Black Sea due to the Russia-Ukraine conflict. This demand surge is attributed to logistical challenges in the Black Sea region, which may force India to substitute sunflower oil with palm oil.
Anilkumar Bagani, research head at vegetable oil broker Sunvin Group, stated that the market is now anticipating fresh directions and is awaiting Malaysia's potential proposal to waive export duties on crude palm oil during the upcoming budget session, which could make Malaysian exports more competitive against those of Indonesia.
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