Palm oil climbs to one-month high

SINGAPORE, Aug 26 (Reuters): Malaysian palm oil futures climbed for the fourth consecutive day on Monday to close at their highest in one month, on Indonesia's plan to lower its export taxes and further raise its biodiesel blending rates.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed up 54 ringgit, or 1.4 per cent, at 3,921 ringgit ($902.42) a metric ton, finishing at its highest since July 24.

The contract had surged 3.1 per cent to an intraday high of 3,990 ringgit earlier in the session before retreating.

Indonesia's trade ministry is mulling a plan to adjust its palm oil export tax to make palm oil more competitive amid weak global demand, Bisnis.com reported, citing Trade Ministry senior official Isy Karim.

Its president-elect Prabowo Subianto hopes to implement mandatory 50 per cent palm oil-based biodiesel blending by early next year, which he said would cut fuel imports by $20 billion per year.

Indonesia, the world's top palm oil consumer, last week said it planned to raise the blending to 40 per cent in January 2025, from the present 35 per cent.