*
Futures prices lower for second day on weaker rival oils
*
India's palm oil imports could jump 16% in 2022/23 to 4-year high
*
Rising consumption from developing countries likely to offset EU
deforestation
law
(Updates with closing prices, additional info)
By Matthew Chye
SINGAPORE, March 7 (Reuters) - Malaysian palm oil futures finished lower
on Tuesday, extending losses to a second consecutive session, as weaker rival
vegetable oils weighed on prices.
The benchmark palm oil contract for May delivery on the Bursa
Malaysia Derivatives Exchange slid 77 ringgit, or 1.8%, to 4,206 ringgit
($940.94) by the end of trading on Tuesday.
Dalian's most-active soyoil contract fell 1.03%, while its palm oil
contract lost 1.51%. Soyoil prices on the Chicago Board of Trade were down 0.36%.
Palm oil is affected by price movements in related oils as they compete for
a share in the global vegetable oils market.
"Physical prices are higher than the exchange traded values, as the physical
market is experiencing supply tightness due to lower production at the moment,"
market sources said.
"We might see more exports coming from Malaysia due to Indonesia's Domestic
Market Obligation (DMO) regulations, alongside higher levies and duties on palm
exports," they added.
The Asian Palm Oil Alliance (APOP), a body of palm oil buyers, want
producing countries to make sure they have stable export policies after changes
last year caused volatility in the trading of the tropical oil, the head of the
group said.
Malaysia's biodiesel exports in 2023 are expected to fall to a six-year low
of 300,000 tonnes due to the European Union's decarbonisation plans, the
Malaysian Biodiesel Association (MBA) said on Tuesday.
India's palm oil imports could jump 16% in 2022/23 to a four-year high of
9.17 million tonnes, as consumption is set to jump after two years of
contraction due to COVID-led lockdowns, Sudhakar Desai, president of the Indian
Vegetable Oil Producers' Association told Reuters on Tuesday.
India, the world's biggest importer of vegetable oils, is considering
raising its import duty on palm oil to help support local farmers reeling from a
crash in domestic rapeseed prices, government and industry officials said on
Monday.
The European Union's deforestation law is unlikely to have a meaningful
impact on demand for Southeast Asian palm oil as the surplus is shrinking amid
rising consumption from developing countries, James Fry, chairman of commodities
consultancy LMC International said on Monday.
($1 = 4.4700 ringgit)
(Reporting by Matthew Chye; Editing by Rashmi Aich and Shailesh Kuber)
* To view freight rates from Peninsula Malaysia/Sumatra to China, India, Pakistan and Rotterdam, please key in and press enter, or double click between the brackets.
* Reuters Terminal users can see cash and futures edible oil prices by double clicking on the codes in the brackets: To go to the next page in the same chain, hit F12. To go back, hit F11. Vegetable oils Malaysian palm oil exports CBOT soyoil futures CBOT soybean futures Indian solvent Dalian Commodity Exchange Dalian soyoil futures Dalian refined palm oil futures Zhengzhou rapeseed oil European edible oil prices/trades ))
