January 9, 2020 / 11:07 AM / 19 days ago

VEGOILS-Crude palm oil surges as India restricts refined palm oil imports

 (Adds closing prices)
    By Mei Mei Chu
    KUALA LUMPUR, Jan 9 (Reuters) - Malaysian crude palm oil futures rallied on
Thursday, recouping losses suffered this week, as India's move to restrict
imports of refined palm oil boosted prices, while signs of de-escalation in
Iran-U.S. tensions soothed concerns. 
    The benchmark palm oil contract for March delivery on the Bursa
Malaysia Derivatives Exchange closed at 72 ringgit, or up 2.4%, at 3,113 ringgit
($761.50), on speculation India might import more crude palm oil to refine
itself.
    That was its strongest gain in five sessions. 
    India imposed restrictions on refined palm oil and palmolein imports on
Wednesday, a move sources said was a retaliation against top supplier Malaysia
after its criticism of India's actions in Kashmir and a new citizenship law.
 
    The move would lead to a loss of market share for Malaysia in refined palm
oil and spark a price war with rival supplier, Indonesia, which has
traditionally been more cost competitive, the Palm Oil Refiners Association of
Malaysia said on Thursday.
    Meanwhile, U.S. President Donald Trump on Wednesday tempered days of angry
rhetoric and said Iran was "standing down" after its missile attacks at U.S.
forces in Iraq left no casualties, while Tehran said the strikes "concluded" its
response to the killing of military leader Qassem Soleimani.
    December crude palm oil stockpiles in Malaysia likely fell 8.5% from
November to their lowest in 27 months due to dry weather and lower fertiliser
usage, a Reuters survey showed on Sunday. 
    Dalian's most-active soyoil contract rose 2.6%, while its palm oil
contract dipped 0.03%. Soyoil prices on the Chicago Board of Trade
 gained 0.2%.
    Palm oil is affected by price movements in related oils as they compete for
a share in the global vegetable oils market.
    
  Palm, soy and crude oil prices                                                       
 at 1019 GMT                                                                 
                                                                                       
 Contract                   Month      Last    Change         Low      High      Volume
 MY PALM OIL              MAR0         3113    +72.00        3038      3124       24034
 MY PALM OIL              FEB0         3120    +68.00        3050      3134        1720
 MY PALM OIL              JAN0         3120    +82.00        3088      3120          99
 CHINA PALM OLEIN         JAN0            0     +0.00           0         0           0
 CHINA SOYOIL             JAN0            0     +0.00           0         0           0
 CBOT SOY OIL             MAR0        34.94     +0.38       34.57     34.95       12850
 INDIA PALM OIL           JAN0       831.50     +7.10      825.40       835        1672
 INDIA SOYOIL             JAN0          940    +10.00       930.6     940.6        8260
 NYMEX CRUDE              FEB0        59.63     +0.02       59.51     60.31      118750
 
($1 = 4.0880 ringgit)

    
 (Reporting by Mei Mei Chu; Editing by Shailesh Kuber and Mark Potter)
  
 
 
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