Malaysian Palm Oil Council Russia's Post

VEGOILS-Palm gains as investors seek details on Indonesia's export levy change

KUALA LUMPUR, June 7 (Reuters) - Malaysian palm oil futures firmed on Tuesday as trading resumed after a long weekend, with expectations of a decline in end-May inventories supporting the market while traders awaited details on Indonesia's export levy adjustment.

The benchmark palm oil contract FCPOc3 for August delivery on the Bursa Malaysia Derivatives Exchange gained 45 ringgit, or 0.7%, to 6,498 ringgit ($1,478.50) a tonne in early trade.

FUNDAMENTALS
Indonesia has adjusted its palm oil export levy, a senior official at the economic ministry said on Sunday, without giving details.

The world's biggest producer has issued around 302,000 tonnes of palm oil export permits since it restarted exports.

In Malaysia, end-May palm oil inventories likely dropped 6% from April to 1.54 million tonnes due to slow output and a surge in exports, a Reuters survey showed on Friday.

India's palm oil exports in May were its highest in seven months and up 15% on April as the country overcame curbs on Indonesian exports by sourcing more of the commodity from Malaysia, Thailand and Papua New Guinea, five industry officials said.

Dalian's most-active soyoil contract DBYcv1 rose 0.5%, while its palm oil contract DCPcv1 gained 0.6%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.2%.

Palm oil may test a support at 6,386 ringgit per tonne, a break below which could trigger a drop to a range of 6,204-6,317 ringgit, Reuters technical analyst Wang Tao said.

MARKET NEWS
Asia's stock markets edged lower on Tuesday, the yen hit a 20-year low and bond markets wavered as investors nervously awaited U.S. inflation figures and central bank meetings in Australia, Europe and, next week, in the United States.
By: via Malaysian Palm Oil Council Russia