Palm prices rise after China imposes duties on imports of canola from Canada
Malaysian palm futures closed higher Wednesday, continuing gains for a fourth consecutive session. This was due to the strength of the Dalian market fueled by China’s plan to impose an anti-dumping tariff on canola imported from Canada.
The benchmark contract for palm oil delivery in October on the Bursa Derivatives Exchange rose 33 ringgit or 0.75% to 4,435 Ringgit ($1,054.70), a metric tonne, at the close.
The Chinese markets are booming after China announced that a preliminary antidumping duty of 75.8% will be imposed on imports of canola from Canada. Rapeseed futures have soared today. Palm oil and soyoil at Dalian are just following it," said Anilkumar bagani, head research at Mumbai-based vegetable oils broker Sunvin Group.
China announced preliminary antidumping duties on Canadian Canola imports Tuesday. These duties will take effect from Thursday. This is the culmination of a year long trade dispute which began when Ottawa imposed tariffs on Chinese Electric Vehicle imports in August last year.
Dalian's palm oil contract, which is the most active contract, rose 1.4% while soyoil prices increased by 1.49%. Chicago Board of Trade soyoil prices rose 0.28%.
As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.
A circular posted on the Malaysian Palm Oil Board's website on Thursday showed that Malaysia had raised its crude palm oil price reference for September, which increased the export duty to 10%.
Six dealers said that India's imports of soyoil are expected to increase 60% in the next year, reaching a record level by 2024/25. This is due to refiners increasing purchases because palm oil costs less, and shipments are likely to reach a five-year-low.
Dealers said that palm oil imports are expected to drop 13.5% from the previous year to 7,8 million tons. This is the lowest level since 2019/20.
The palm ringgit's trade currency strengthened by 0.54% compared to the dollar. This made the commodity more costly for buyers who hold foreign currencies.
(source: Reuters)
