Malaysian palm oil futures tumbled below the MYR 6,000-per-tonne level, a level not seen in two months, after Indonesia announced an export acceleration scheme to ship at least 1 million tonnes of crude palm oil and derivatives. The world’s biggest exporter is also decreasing the maximum export tax rate and levy for crude palm oil to $488 per tonne from $575 per tonne to boost shipments. On the flip side, the production outlook in Malaysia continues to deteriorate amid a labor crunch, while inventories shrank at the end of May as exports surged to a five-month peak. On the demand side, imports from top buyer India in May hit the highest in seven months as the country overcame recent curbs on Indonesian exports by buying more of the commodity from other producers, particularly Malaysia.
