Palm oil climbed to the highest level in almost three weeks on expectations for higher demand after top buyer India cut import duties.
Futures in Kuala Lumpur rose as much as 2.6% after India announced on Friday a reduction to levies on edible oils including palm and sunflower in an effort to lower retail prices. The market was closed on Monday for a holiday.
The change to duties takes effect May 31.
Other supportive factors include stronger crude prices, which bolster the appeal of palm as biofuel feedstock, and Malaysia’s higher exports, according to David Ng, a senior trader at IcebergX in Kuala Lumpur.
Chart: Bloomberg
