India's Import Tax Income May Raise Malaysian CPO Price
By : Abraham Sihombing And Aldo Bella Putra | Wednesday, June 06 2018 - 23:30 IWST
Kebun Kelapa Sawit (Ist)
INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) Malaysia opened at RM2.404 per ton on Wednesday (06/06/2018), or up 0.08% compared to the price at the close of trading on Tuesday (05/06 / 2018) of RM2,402 per ton.
On Tuesday's trading, Malaysia's strategic commodity prices moved in the range of RM2,382-2,410 per ton compared to today's trading in the range of RM2,399-2,412 per ton.
"The current price of Malaysian CPO is RM2.405 per ton. It looks likely to go up. The reason, ahead of the release of MPOB (Malaysian Palm Oil Board) data on June 11, 2018, Malaysian CPO inventory surveys conducted through polls show for five consecutive months between 1.80-4.70%, "said Arie Nurhadi, research analyst of PT Monex Investindo Futures, in Jakarta, Wednesday (06/06/2018).
Arie explained CPO exports and production looks down. The rate of decline in exports looks faster than production. In addition, the shipment of CPO to India in May 2018 and then looks down sharply.
India is the world's largest CPO consumer. Malaysian and Indonesian CPO exports to India have slowed since India established a series of import tariffs for edible oil from November 2017 to March 2018.
Part of Malaysia's CPO price decline is also expected as losses in the working day after Bursa Malaysia are closed for three long days following the announcement of a new government that won the General Election and the addition of an additional public holiday on May 1, 2018.
"In addition, the fasting period in Ramadhan this year also slows down the performance of the harvest because many Muslim workers in Malaysia and Indonesia run fasts," said Arie.
However, Arie said, news of India's plan to raise CPO import taxes sustained the commodity price hike today or just a day after reaching its lowest point in almost a month.
"The price of CPO contract for August 2010 shipment on Bursa Malaysia Derivatives Exchange rose 0.12% to RM2.405 per ton or equivalent to US $ 605.41 per ton," Arie concluded.
India, which is the world's largest CPO importer, is now considering raising import duties for the commodity. India currently imposed a 30% import tax on soybeans and 25% for rapeseed and sunflower oil, and CPO import tax by 44%. (Abraham Sihombing)