SINGAPORE, June 17 (Reuters) - Malaysian palm oil futures
rose more than 1% to reverse early falls on Thursday, as top
buyer India lowered base crude palm oil prices and the ringgit
The benchmark palm oil contract for September
delivery on the Bursa Malaysia Derivatives Exchange gained 41
ringgit, or 1.2%, to 3,444 ringgit ($833.49) a tonne by the
"Palm oil prices found some emotional support from India's
price revision late last night, which could favour palm oil
imports over soy oil," said Anilkumar Bagani, head of research
at Mumbai-based vegetable oil broker Sunvin Group.
Late on Wednesday, the Indian government revised the base
import price of crude palm oil to $1,136 a tonne from $1,222 a
tonne. India uses the base import price to calculate the amount
of tax an importer needs to pay. It, however, did not tweak
import taxes on edible oils.
Also supporting palm prices was a weaker ringgit,
which fell 0.4% against the dollar. A weaker ringgit makes palm
cheaper for people who hold other foreign currencies.
Palm's gains were however capped by cheaper rival oils and
weaker export data.
The Chicago Board of Trade soyoil contract fell 0.3%.
U.S. soybean futures fell for a seventh consecutive session as a
stronger dollar pushed prices to a two-month low.
Soybean oil prices on the Dalian Commodity Exchange dropped
1.7%, while the palm oil contract fell 1.8%.
Palm oil is affected by price movements in related oils as
they compete for a share in the global vegetable oils market.
Exports of Malaysian palm oil products for June 1-15 fell
7.9% from the same period a month ago, cargo surveyor Societe
Generale de Surveillance said.
Palm oil may break a support at 3,351 ringgit per
tonne and fall to 3,195 ringgit, Reuters analyst Wang Tao said.
($1 = 4.1320 ringgit)
(Reporting by Fathin Ungku; Additional reporting by Mayank
Bhardwaj; Editing by Shailesh Kuber and Subhranshu Sahu)