Monday, December 1, 2008

Commodity Buoyancy An Extension Of The Reports - Dec 01, 2008

The Malaysian CPO futures are trading higher today, approaching the MYR 1700 levels in intraday moves. The commodity witnessed an extension of the last few days buoyancy as reports that Indonesia is keeping its export tax on crude palm oil and its derivatives at nil in December supported the commodity. Export taxes on CPO and its derivatives were slashed to zero in November from a high of 20% a few months.

Ago to encourage exports of Indonesia's main commodity amid falling demand and lower prices.Export taxes on oil palm fruit and palm kernel remain unchanged at 40% in December - to encourage processing of the products into CPO and its derivatives locally.The February CPO futures on the Bursa Malaysia are quoting at MYR 1661 a tonne, up MYR 29 from the previous close after hitting a high of MYR 1675 a tonne.

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