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NEWS ADMIN

DATE

06/12/2018

NEWS PROVIDER

Siti Safura Masiron

NEWS SOURCE

DAWN.com

CATEGORY

HEADLINE

Palm oil drops

06.12.2018 (DAWN.com) - KUALA LUMPUR: Malaysian palm oil futures fell more than 1 per cent on Wednesday due to expectations of rising inventories in Malaysia and a change in Indonesia’s export levy rules.

Indonesia relaxed rules on palm oil levies and derivative products effective immediately following a drop in prices, the country’s finance ministry said on Wednesday.

It will not collect levies from palm exporters when prices are below $570 per tonne, but will charge $10-$25 a tonne once prices are in a range of $570-$619 per tonne.

The levy will rise to $20-$50 when prices hit above $619 per tonne. The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange fell 1.2pc to 1,995 ringgit ($480.43) a tonne by the close of trade, after earlier dropping as much as 1.5pc to 1,990 ringgit