Asian palm oil markets at top end of range<\/p>\n
KUALA LUMPUR (Reuter): Asian palm oil markets are seen trading
\nfirm this week, though demand may begin to dry up as the price of
\nMalaysia's benchmark July futures heads up towards closer to
\n1,300 ringgit a ton, regional traders said.<\/p>\n
\"It's at the top end of the range,\" a senior Singapore dealer
\nfor a U.S. commodity company said, adding July contract will
\nlikely inch up to around 1,295 a ringgit a ton.<\/p>\n
Some traders in Kuala Lumpur said the July contract's support
\nlevel is 1,280 ringgit. On Friday, the contract closed at 1,290
\nringgit a ton.<\/p>\n
\"I think palm will remain firm this week due to strong
\ninterest from refiners in Malaysia,\" a Singapore dealer for a
\nEuropean trading house said.<\/p>\n
Traders in Kuala Lumpur said there was shortcovering from
\nrefiners on expectation of tight supplies in the near term.<\/p>\n
Malaysian physical prices were firmer in recent days with
\nrefiners seen covering their positions to meet earlier
\ncommitments.<\/p>\n
Traders in Singapore said the firm tone of the market should
\ncontinue, but the rise may eventually discourage buyers. \"I think
\nthe prices are beginning to deter some buyers,\" a Singapore
\ndealer said.<\/p>\n
A Malaysia trader added: \"If the market surges further this
\nweek, it will be more expensive for consumers to buy palm than
\nother edible oil.\"<\/p>\n
Malaysia's output is expected to rise in coming months as the
\npeak production period is arriving, traders said. Palm normally
\npeaks at October\/November.<\/p>\n
In Indonesia, prices will be steady with buying interest
\nremaining modest.<\/p>\n
\"I think prices will be hovering around current levels this
\nweek,\" an Indonesian trader said. \"There has not been much local
\nsupport because of the ongoing general election campaign.\"<\/p>\n
Players had generally been cautious, keeping stock levels low
\nas a precaution against possible social unrest and damage to
\nproperty during campaigning for the May 29 elections.<\/p>\n
\"There might be some sporadic buying as usual but prices are
\nlikely to remain stable,\" an Indonesian dealer said.<\/p>\n
Indonesian palm olein finished last week at 1,450-55 rupiah\/kg
\nin Jakarta, up from 1,445-50 rupiah a week ago.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-palm-oil-markets-at-top-end-of-range-1447893297",
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