* Indonesia raises crude palm oil export tax to 9 pct for
* Move may shift some demand to rival Malaysia
* Palm oil to test resistance at 2,486 ringgit -technicals
* Indonesia's Dec palm oil exports dip 4 pct m/m
By Chew Yee Kiat
SINGAPORE, Jan 29 Malaysian palm oil futures
gained on Tuesday on expectation some buyers may switch after
Indonesia announced a higher crude palm oil export tax, although
gains were limited by persisting concerns over record stocks.
Indonesia, the world's top palm oil producer, will increase
its export tax for crude palm oil to 9 percent for February from
7.5 percent in the previous month, while Malaysia's crude palm
oil export tax will remain at zero percent for February.
"The market is a bit uncertain now, the focus is on stocks
and exports. That's why we see some range-trading today," said a
trader with a foreign commodities brokerage in Malaysia. "But
the higher Indonesia tax could be a reason why the market is a
By market close, the benchmark April contract on
the Bursa Malaysia Derivatives Exchange had climbed 1.3 percent
to 2,476 ringgit ($805) per tonne. The market traded in a range
of 2,446-2,484 ringgit after resuming trading from a Monday
Total traded volumes stood at 30,506 lots of 25 tonnes each,
higher than the usual 25,000 lots.
Technical analysis shows palm oil is expected to test a
resistance at 2,486 ringgit per tonne, a break above which will
lead to a further gain to 2,522 ringgit, said Reuters market
analyst Wang Tao.
Market players will be looking out for Malaysia's January
palm exports data due Thursday for further trading cues.
Shipments for the first 25 days of the month suffered a
double-digit decline on lower Chinese and European demand,
raising worries that stocks could still climb higher in January
after hitting a record 2.63 million tonnes last month.
Palm oil exports from Indonesia fell 4 percent to 1.9
million tonnes in December from the previous month, industry
data showed on Tuesday.
Brent crude stayed above $113 on Tuesday on hopes that
economic growth might be picking up in the world's largest oil
consumer after a gauge of planned U.S. business spending rose in
December, adding to recent positive global economic data.
In competing vegetable oil markets, U.S. soyoil for March
delivery edged up 0.1 percent in late Asian trade. The
most active September soybean oil contract on the
Dalian Commodity Exchange closed 0.5 percent lower.
Palm, soy and crude oil prices at 1003 GMT
Contract Month Last Change Low High Volume
MY PALM OIL FEB3 2400 +18.00 2380 2411 513
MY PALM OIL MAR3 2443 +31.00 2414 2452 4060
MY PALM OIL APR3 2476 +31.00 2446 2484 16750
CHINA PALM OLEIN SEP3 7014 +8.00 6982 7038 347106
CHINA SOYOIL SEP3 8684 -40.00 8660 8734 515556
CBOT SOY OIL MAR3 51.94 +0.05 51.75 52.01 3982
NYMEX CRUDE MAR3 96.57 +0.13 96.42 96.97 14123
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
Crude in U.S. dollars per barrel
(Editing by Miral Fahmy and Muralikumar Anantharaman)