August 17, 2022: Malaysian palm oil futures extended gains on Wednesday, after the world's second-largest producer lowered its exports tax reference price.
The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange gained 13 ringgit, or 0.31%, to 4,195 ringgit ($939.74) a tonne during early trade.
Malaysia has maintained its September export tax for crude palm oil at 8% and lowered its reference price, a circular on the Malaysian Palm Oil Board website showed on Wednesday.
The ringgit MYR=, palm's currency of trade hovered near its lowest in more than five years, making the commodity cheaper for holders of foreign currency.
Dalian's most-active soyoil contract DBYcv1 gained 0.9%, while its palm oil contract DCPcv1 rose 0.4%. Soyoil prices on the Chicago Board of Trade BOcv1 were up 0.2%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may break a support at 4,085 ringgit and fall towards the next support at 3,857 ringgit per tonne, Reuters technical analyst Wang Tao said.
Asian shares tracked solid Wall Street performance, as strong overnight earnings for U.S. retail giants pointed to further scope for the Federal Reserve to tackle inflation with rate hikes.