Friday, October 12, 2012

20121012 1527 Palm Oil Related News.

Malaysia to cut crude palm oil export tax, scrap quotas 0#FCPO: - RTRS
12-Oct-2012 15:41
KUALA LUMPUR, Oct 4 (Reuters) - Malaysia will cut crude palm oil (CPO) export taxes and discontinue a tax free shipment quota for the grade from Jan 1 2013, a government minister said on Friday, as the world's No.2 producer seeks to snatch back market share from top producer Indonesia.
"The implementation of reduced export duty on CPO will also allow the refineries in Malaysia to market their products at competitive prices to the global markets," Commodities Minister Benard Dompok said in a statement.
"In tandem with reduced CPO export duty, the government will discontinue with the duty free CPO export facility beginning 1 January 2013," he said after Malaysia's cabinet met earlier in the day to discuss measures to support the palm oil sector.
Dompok did not disclose the quantum of the cut in crude palm oil export taxes from the current 23 percent duty.

VEGOILS-Palm oil slips ahead of tax cut decision - RTRS
12-Oct-2012 13:22
Palm oil may retrace to 2,399 ringgit-technicals Malaysian may issue details of crude palm oil tax cut later in the day
By Anuradha Raghu
KUALA LUMPUR, Oct 12 (Reuters) - Malaysian palm oil futures slipped on Friday ahead of a possible government decision to lower export taxes of the crude grade although losses were limited by a U.S. report showing tighter soybean supplies.
The U.S. Department of Agriculture showed the stocks to use ratio for soybeans was at its tightest since the mid-1960s, signalling tighter supplies of competing soyoil at a time when palm oil stocks in Malaysia hit a record.
Palm oil investors are awaiting a decision on Friday by Malaysia on the quantum of a cut in crude palm oil export tax, which may support prices that have lost a fifth so far this year as the move may spur more shipments and eat into stocks.
"There needs to be more positive news for the market to negate higher, and that includes a tax cut," the trader said, adding that prices in the next two weeks could range between 2,400-2,600 ringgit per tonne.
"They are worried about inventory. The demand cant cope up with production, and the market is trying to hold."
By the midday break, the benchmark December contract FCPOc3 on the Bursa Malaysia Derivatives Exchange lost 1.0 percent to 2,497 ringgit ($815.6) per tonne.
Total traded volumes stood at 9,708 lots of 25 tonnes each, thinner than the usual 12,500 lots as traders waited for further cues from the tax cut decision.
Technicals showed that palm oil faces a resistance at 2,528 ringgit per tonne and may retrace to 2,399 ringgit, and a break above 2,528 ringgit will lead to a moderate gain to 2,579 ringgit, said Reuters analyst Wang Tao. (Full Story)
Malaysia's cabinet has given the greenlight to slash export taxes from the current 23 percent per tonne but will only finalize the size of the cut in a government meeting later today. (Full Story)
A larger tax cut could boost Malaysia's crude exports and claw back market share from top producer Indonesia, and help ease stockpiles which climbed to a record high of 2.48 million tonnes in September.
Brent crude held above $115 a barrel on Friday, trading near four-week highs and on course for its biggest weekly gain in two months, supported by tensions between Turkey and Syria, lower output at North Sea oilfields and upbeat U.S. data. O/R
In other vegetable oil markets, U.S. soyoil for December delivery BOZ2 was flat in Asian trade as traders booked profits after the market posted strong gains in the previous session.
The most active January 2013 soyoil contract DBYF3 on the Dalian Commodity Exchange also edged down 0.4 percent on weak demand for edible oils in China, the world's No.2 buyer.
Palm, soy and crude oil prices at 0503 GMT

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