Wed, 04 Nov 2009
From:
By Luzi Ann Javier
Singapore. Palm oil declined as mounting stockpiles in Indonesia, the world’s biggest producer, boosted investor concern about excess supply.

“Increasing palm oil stocks over in Indonesia are starting to get on people’s radar screen,” Carey Wong, an analyst at Oversea-Chinese Banking Corp., said by phone from Singapore on Tuesday. “The problem is demand hasn’t really picked up faster than the increase in production.

Inventories in the country probably climbed to 1.7 million tons in October from an average of 1.3 million to 1.4 million tons in August and September, Derom Bangun, a deputy chairman of Indonesia’s Palm Oil Board, said on Monday in Kuala Lumpur.

Palm oil for January delivery dropped as much as 1 percent to 2,186 ringgit ($638) a ton on the Malaysia Derivatives Exchange before closing at 2,188 ringgit.

Crude oil and soybean oil for December delivery were little changed at $77.99 a barrel in New York and 36.78 cents a pound in Chicago.

Soybean oil’s premium over palm oil was 26 percent on Tuesday, down from a three-month high of 32 percent on Oct. 21. Rising inventories may curb a 30 percent rally in palm oil futures this year, which outpaced a 9.4 percent gain in soybean oil.

Crude oil advanced 75 percent. Palm oil production in Indonesia may reach 21.5 million tons to 22 million tons in 2010 as more plantations mature, from an expected 20.5 million tons this year, Bangun said.

Exports will also be higher as economic growth boosts demand in China and India, he said. Indonesia postponed to July a requirement for commodity exporters to use letters of credit for shipments exceeding $1 million.

The condition, which was to take effect on Sunday, was postponed “because the aim of the rule should be reached without causing excessive burden to exporters amid a global recession that has not recovered,” according to a statement from the Department of Trade on Tuesday.

PT Sinar Mas Agro Resources and Technology may build two palm oil processing plants for a total of $150 million, Bisnis Indonesia reported.

Sinar Mas plans to build a palm oil-based food-processing plant in Jakarta and an oleochemical plant in Medan, North Sumatra, it reported.

Bloomberg



News Search/Filter
Transaction Rates
19 Aug 17
Buy
Sell
BTC1
56,435,019
56,435,019
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services