* Indonesia sets CPO export tax for April at zero
Related Stories

* Palm oil to fall to 2,146 ringgit -technicals

* Malaysian GST seen weakening April exports, prices

Malaysian palm oil futures

edged down on Tuesday as traders took profits after a rally the

day before and after Indonesia kept its palm oil export tax at

zero for April.

By Tuesday's close the benchmark June contract on

Bursa Malaysia Derivatives was down 1.19 percent at 2,165

ringgit ($585) a tonne. Total traded volume stood at 35,441 lots

of 25 tonnes, just above the daily average of 35,000 lots

traded.

Exports of Malaysian palm oil products in March rose 21.4

percent to 1.16 million tonnes from 953,053 tonnes shipped in

February, cargo surveyor Intertek Testing Services (ITS) said on

Tuesday.

According to cargo surveyor Societe Generale de

Surveillance, Malaysian palm oil exports over the same period

rose 14.8 percent to 1,140,355 tonnes from 993,376 tonnes

shipped during February.

"Normally traders buy on rumours and sell on facts," said a

trader with foreign commodities brokerage, noting that the

increase in Malaysian palm oil exports had earlier been factored

into prices and that traders were concerned about Indonesia's

export tax remaining at zero.

The market is also focusing on Malaysia's plans to implement

a goods and services tax that is seen affecting shipments and

sales of the edible oil in April.

"A lot of the plantations are pushing their products out

this month. When it comes to April our exports are expected to

be weak," the trader said. "The GST will have a huge impact on

our whole economy."

While palm oil itself is exempt from the GST, exporters and

traders will need to apply for tax refunds from customs,

potentially reducing their operations' liquidity, he said.

"From crude to the refinery they can claim back, but the

process and duration for claims is unknown."

Golden Agri-Resources Ltd, the world's second

biggest oil palm planter by acreage, expects its palm and palm

kernel oil production to rise around 5 percent this year, coming

in at the lower end of a projected annual growth rate as dry

weather hurts yields, potentially providing some price support.

In other vegetable oils, the U.S. soyoil May contract

slipped 0.56 percent during late Asian trading, while the most

active September soybean oil contract on the Dalian

Commodity Exchange lost 0.74 percent.

Brent crude oil dropped towards $55 a barrel on Tuesday as

Iran and six world powers entered a final day of talks over a

nuclear deal that could see the energy-rich country increase oil

exports to world markets.

Palm, soy and crude oil prices at 1110 GMT

Contract Month Last Change Low High Volume

MY PALM OIL APR5 2136 -20.00 2132 2169 256

MY PALM OIL MAY5 2168 -28.00 2162 2187 2751

MY PALM OIL JUN5 2165 -26.00 2156 2182 20284


CHINA PALM OLEIN SEP5 4644 -24.00 4632 4686 429164

CHINA SOYOIL SEP5 5352 -40.00 5342 5408 424180

CBOT SOY OIL MAY5 30.33 -0.70 30.32 30.48 4345


INDIA PALM OIL MAR5 434.30 -0.70 434.30 435.10 148

INDIA SOYOIL APR5 583.25 +0.55 580.50 585.50 14175


NYMEX CRUDE MAY5 47.73 -0.95 47.28 48.73 45127


Palm oil prices in Malaysian ringgit per tonne

CBOT soy oil in U.S. cents per pound

Dalian soy oil and RBD palm olein in Chinese yuan per tonne

India soy oil in Indian rupee per 10 kg

Crude in U.S. dollars per barrel

($1 = 6.2020 Chinese yuan)

($1 = 62.6450 Indian rupees)

($1 = 3.7020 ringgit)