The contract hit its strongest level since Feb. 8 on Monday at 2,312 ringgit. Reuters technical analyst for commodities and energy, Wang Tao, said a break of support at 2,243 ringgit could open the way for a move to 2,181 ringgit. "The current weakness in competing vegetable oils are dragging on prices," said a Kuala Lumpur-based trader. US soyaoil futures on the Chicago Board of Trade were last down 0.7% and the September soyaoil contract on the Dalian exchange declined 2.1%.
The Dalian September palm oil contract also fell 2.9%. India's trade ministry on Monday recommended raising the tax on refined palm oil imports from Malaysia to 50% from 45% to curb cheaper purchases of the commodity, a government document said. India, the world's biggest edible oil importer, currently imposes a 40% import tax on crude palm oil and 50% on refined palm oils. But refined palm oil shipments from Malaysia have been taxed at 45% since January, under an agreement between the two countries. The change in duty structure led to a jump in Malaysia's refined palm oil exports to India in the first half of 2019 from the same period a year earlier, according to data from the Malaysian Palm Oil Board.