Palm oil futures fell 6% in two sessions%

Crude palm oil futures on the Malaysian stock exchange fell another 2.1% yesterday to 4,173 ringgit/ton or 9 995.9/ton, losing more than 6% in two days amid an active sell-off of futures due to higher export taxes. According to the Malaysian palm oil Council, in October the export duty on crude palm oil will remain at 8%, but the reference price from which the tax will be calculated will increase to 4472.46 ringgit/ton or 1 1068.18/ton, while in September it was 4255.52 ringgit/ton.

Recall that in Malaysia, with a reference price in the range of 2250-2400 ringgit/t, the export duty on the product is 3%, and when the reference price exceeds 3450 ringgit/t, the maximum export duty is set at 8%.

Over the past month, palm oil prices have fallen by 3.7%, rising during this period to the levels of 4480 and 4440 ringgit/t and falling to 4278 and 4173 ringgit/t.

Lower palm oil prices have increased pressure on soybean oil prices on the Chicago Stock Exchange, where December futures fell 2% to.1,215/ton yesterday, losing 5.8% in the last three sessions and 6.2% in the month.

The low yield of sunflower seeds and the delay in harvesting caused by precipitation in Ukraine and Russia hinders the seasonal decline in prices for sunflower oil, which still remain at the level of F 1260-1300/ton FOB.

Tomorrow, Egypt's GASC will hold an international tender for the purchase of 30 thousand tons of soybean and 10 thousand tons of sunflower oil for delivery from November 15 to December 15, 2021, which will become a new price indicator.