20121023 1447 Palm Oil Related News.

Indonesia may cut palm export tax to 10.5 pct in Nov -industry SMAR.JK WLIL.SI - RTRS
23-Oct-2012 14:44
JAKARTA, Oct 23 (Reuters) - Indonesia, the world's top palm oil producer, may cut its export tax for crude palm oil to 10.5 percent for November, from 13.5 percent for October, an industry group said on Tuesday.
Lower benchmark prices over the last month will prompt the government move, Fadhil Hasan, executive director of the Indonesian Palm Oil Association (GAPKI), told Reuters.
From late August, benchmark Malaysian palm oil futures FCPOc3 have fallen by as much as 29 percent due to a slowing economic outlook and a rise in stocks, but have partly recovered to trade at about 2,541 ringgit ($833) per tonne on Tuesday.
Southeast Asia's largest economy has a palm export tax system that aims to boost downstream industries, secure domestic supplies and reduce volatility in cooking oil prices.
The tax rate for the subsequent month is calculated by government officials based on CIF Rotterdam prices, the Malaysian benchmark and Jakarta futures prices.


VEGOILS-Palm oil down on profit-taking, high stocks concerns
Tue Oct 23, 2012 1:06am EDT
* Futures market down on profit-taking from Monday's 3-week
high
    * Investors worry about high stocks despite strong exports
-trader
    * Palm oil to rebound more to 2,676 ringgit -technicals

    By Anuradha Raghu
    KUALA LUMPUR, Oct 23 (Reuters) - Malaysian palm oil futures
fell on Tuesday as investors booked profits after the previous
session's three-week high and on worries that October's
stronger-than-expected exports were not enough to ease record
high stocks in the world's No.2 producer.
    Prices shot up to 2,580 ringgit on Monday, a level unseen
since Sept. 28, after data from cargo surveyors showed that
exports in the first twenty days of the month surged as much as
16.7 percent.
    "Yesterday prices went up too fast, way above market
expectations," said a trader with a local commodities brokerage
in Malaysia.
    "Those who went long yesterday are now liquidating their
positions and taking some profit because of the uncertainty over
this export number," he added.
    By the midday break, the benchmark January contract
on the Bursa Malaysia Derivatives Exchange fell 1.4 percent to
2,541 ringgit ($833) per tonne.
    Total traded volumes stood at 13,547 lots of 25 tonnes each,
slightly higher than the usual 12,500 lots as investors hedged
positions after the positive export data.
    Technical analysis showed palm oil may rebound further to
2,676 ringgit per tonne, with a support level of 2,492 ringgit,
said Reuters market analyst Wang Tao.
    Seasonally high production amid commodity demand weakened by
a tepid global economy lifted palm oil stocks in Malaysia to a
record high 2.5 million tonnes in September, hurting prices
which has dropped one-fifth so far this year.
    Despite the positive export numbers signalling improving
demand from the European Union and Pakistan, investors remain
wary about the future.
    "I'm quite positive about it but as of now, that's the only
hope that we have," the trader added.
    "Whether the number is sufficient enough to bring the stock
level lower or not for the coming report in November -- that is
still a big question."
    In related markets, Brent futures held steady above $109 as
investors judged the previous session's fall in prices to their
lowest in nearly three weeks as an opportunity to buy, with
simmering tensions in the Middle East providing additional
support.
    In other vegetable oil markets, U.S. soyoil for December
delivery inched up 0.1 percent in early Asian trade. The
most-active May 2013 soybean oil contract on the Dalian
Commodity Exchange fell 0.2 percent by the midday break.