Palm oil prices rose to the highest level in three weeks

The tightening of quarantine in Indonesia, as well as India's decision to reduce import duties on vegetable oil and allow the import of refined palm oil, led to a further increase in palm oil prices to the highest level in three weeks.

According to a report by the Ministry of Finance of India dated June 29, India reduced its basic import duty on crude palm oil (CPO) from 15% to 10% from June 30 for a period of three months, including an additional agricultural tax of 17.5%, and a Social Security tax of 10%, the reduction will reduce the effective tax rate on CPO from 35.75% to 30.25%.

In order to reduce domestic prices for vegetable oils, the Government of India allowed the import of refined palm oil for a period of 6 months, and also reduced the duty on imports of this product from 49.5% to 41.25% for 3 months.

September palm oil futures on the Malaysian stock exchange rose 3.1% to 3,710 ringgits per tonne (8 892/ton) yesterday to their highest level in three weeks, adding about 10% in three weeks.

According to the Trade Association SSPOMA, palm oil production in Malaysia in June fell by 2.9% compared to the previous month due to lower yields, while data show a significant increase in exports for the same period by 7-11%.

Quotes are supported by a further increase in WTI crude oil prices to more than 7 75 per barrel - the highest level since October 2018, as well as a recovery in soybean oil prices on the Chicago SWOT. In two weeks, December soybean oil futures rose 17.5% to.1,372/ton amid hot weather in the United States, despite a 5% increase in soybean acreage compared to last year.

On the Chinese stock exchange in Dalian, the palm oil contract jumped 3.5% to 1 1,157/ton, and the soybean oil contract jumped 2.8% to.1,317/ton.