Last week the Malaysia Derivatives Exchange (MDEX) crude palm oil (CPO) futures prices expanded on their downward correction with the benchmark third-month May futures making fresh lows for the years and dropping to the lowest levels since Nov 1, 2002.
Light buying support emerged towards mid-week on talks that India may cut palm oil import duty to 55% from 65%. Edible oil import duties were left unchanged in India's 2003/04 budget on Feb 28 and traders are speculating that revision of the duty would take place, citing the case of the 2001/02 budget where cuts on edible oil duties were made shortly after the budget announcements.
