VEGOILS-Palm oil extend gains as lower India import taxes lift demand prospects

KUALA LUMPUR, Sept 14 – Malaysian palm oil futures
rose on Tuesday for a second consecutive session, as traders
expected demand to improve after top buyer India lowered its
import taxes, though losses in rival edible oils capped gains.
The benchmark palm oil contract for November
delivery on the Bursa Malaysia Derivatives Exchange was up 16
ringgit, or 0.37%, at 4,334 ringgit ($1,045.09) a tonne during
early trade.

FUNDAMENTALS
* Refinitiv Agriculture Research forecast the contract to
rebound towards resistance levels at 4,360 ringgit-4,380 ringgit
a tonne this week, it said in a note on Monday.
* India’s demand for Malaysian palm oil is likely to improve
this month after rival Indonesia raised its export duties, but
any upside to prices will be limited by erosions in external
edible oil markets, Refinitiv analysts said.
* India has also cut the base import taxes on palm oil,
soyoil and sunflower oil as the world’s biggest vegetable oil
buyer tries to cool near-record price increase ahead of Diwali
festival.
* Dalian’s most-active soyoil contract fell 0.9%,
while its palm oil contract slipped 0.5%. Soyoil prices
on the Chicago Board of Trade were up 0.3%.
* 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 retest a resistance at 4,384 ringgit per
tonne, a break above could lead to a gain at 4,439 ringgit,
Reuters technical analyst Wang Tao said.

MARKET NEWS
* Asia’s share markets were mixed and the dollar held steady
on Tuesday, with investors awaiting U.S inflation data for more
clues on when the Federal Reserve will taper stimulus.

DATA/EVENTS
0600 UK Claimant Count Unem Chng Aug
0600 UK ILO Unemployment Rate July
1230 US CPI MM, SA Aug
($1=4.1470 ringgit) REUTERS
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