KUALA LUMPUR, Oct 14 (Reuters) – Malaysian palm oil futures fell as much as 3% on Thursday after touching an all-time high in the previous session, with weaker rival oils in Dalian also denting sentiment.
The benchmark palm oil contract FCPOc3 for December delivery on the Bursa Malaysia Derivatives Exchange slid 102 ringgit, or 2.03%, to 4,920 ringgit ($1,184.69) a tonne by 0234 GMT.
Palm had gained 3.4% in the previous session, crossing the 5,000 ringgit per tonne mark, after top buyer India slashed imports taxes on edible oils.
FUNDAMENTALS
* India on Wednesday lowered base import taxes on crude palm oil, crude soyoil and crude sunflower oil to zero from 2.5% ahead of key festivals to cool near-record price rises.
* New Delhi also cut the basic import tax on refined palm oil, refined soyoil and refined sunflower oil to 17.5% from 32.5% earlier.
* The world’s biggest palm oil exporter, Indonesia, aims to stop exporting the crude form of the vegetable oil in the future in favour of refined products, President Joko Widodo said on Wednesday.
* Dalian’s most-active soyoil contract DBYcv1 fell 0.9%, while its palm oil contract DCPcv1 eased 0.8%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.1%.
* Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
* Palm oil may break a resistance at 5,048 ringgit per tonne and rise into a range of 5,187-5,274 ringgit, Reuters technical analyst Wang Tao said. TECH/C
MARKET NEWS
* Oil prices rose on Thursday, reversing previous losses, on expectations that high natural gas prices as winter approaches may drive a switch to oil to meet heating demand needs. MKTS/GLOB
DATA/EVENTS
0030 Australia Employment Sept
0030 Australia Unemployment Rate Sept
0130 China PPI, CPI YY Sept
1230 US Initial Jobless Clm Weekly
($1 = 4.1530 ringgit)
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(Reporting by Mei Mei Chu; Editing by Ramakrishnan M.)
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