VEGOILS-Palm jumps 4% after India allows imports of refined pa | Malaysian Palm Oil Council Russia

VEGOILS-Palm jumps 4% after India allows imports of refined palm oil, lowers tax

KUALA LUMPUR, July 1 (Reuters) - Malaysian palm oil futures jumped 4% to a touch a near three-week peak on Thursday, as top buyer India removed restrictions on the imports of refined palm oil and lowered its import tax.

The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange rose 146 ringgit, or 4.06%, to 3,745 ringgit ($901.76) a tonne during early trade.

Palm rose for a third consecutive session to its highest level since June 11.

FUNDAMENTALS
India on Wednesday declared that the import of refined palm oil is amended from 'Restricted' to 'Free', allowing imports of the product for six months.

The country also late on Tuesday cut the import tax on refined palm oil to 41.25% from 49.5% for three months to bring down local edible oil prices.

Malaysia is facing a labour shortfall of around 32,000 people and annual losses of 10 billion ringgit ($2.41 billion) due to corononavirus restrictions, the country's commodities minister said.

Top producer Indonesia has set a lower reference price in July for crude palm oil at $1,094.15 a tonne, an official document seen by Reuters showed on Wednesday.

Dalian's most-active soyoil contract DBYcv1 rose 3%, and its palm oil contract DCPcv1 gained 3.8%. Soyoil prices on the Chicago Board of Trade BOcv1 fell 0.5%.

Palm oil may break a resistance at 3,691 ringgit per tonne, and rise into 3,757-3,853 ringgit range, Reuters technical analyst Wang Tao said.

MARKET NEWS
Global shares retreated from recent highs on Wednesday, as Asian markets grew jittery about a resurgence of COVID-19 cases and Western markets awaited Friday's U.S. jobs report and what it might mean for monetary policy.