Asian palm oil markets eye Indonesian trading<\/p>\n
KUALA LUMPUR (Reuters): Asian palm oil traders are likely to
\nwatch Indonesian markets closely this week as trade fully resumes
\nfollowing weeks of political turmoil.<\/p>\n
Demonstrations and riots came to an end in Indonesia after
\nPresident Soeharto resigned on Thursday.<\/p>\n
\"For sure, the market will start to return to normal on
\nMonday, but it is still too early to make predictions on how the
\nmarket will behave...just wait and see,\" said one trader in
\nJakarta.<\/p>\n
Traders in Medan, they key commodity trading city in North
\nSumatra, said they expected Chinese merchants to return to the
\ncity from Singapore, where they fled because of the riots in
\ncapital Jakarta and Medan.<\/p>\n
The new Indonesian President, B.J. Habibie, named a 36-member
\n\"reform and development\" cabinet on Friday.<\/p>\n
Indonesian traders said they welcomed the appointment of Trade
\nand Industry Minister Rahardi Ramelan, replacing Mohamad \"Bob\"
\nHasan, despite the fact they did not have any idea how the new
\nminister would deal with palm oil issue.<\/p>\n
Ramelan was previously State Minister of Research and
\nTechnology under Soeharto.<\/p>\n
\"We need somebody who knows the market and how it behaves. But
\nin general, there is a sign of relief that Bob Hasan has been
\nreplaced,\" said one trader.<\/p>\n
Traders in Kuala Lumpur were also adopting a wait-and-see
\nattitude after the appointment of Ramelan.<\/p>\n
\"It's is still too early to say anything. We don't know that
\nguy. So it has to take a while to see whether he will make any
\nchanges to improve palm oil dealing,\" said a senior palm oil
\ntrader in Kuala Lumpur.<\/p>\n
Traders added they are closely watching developments in the
\nIndonesian palm oil market and currency movements.<\/p>\n
Indonesian crude palm oil (CPO) was tendered at 3,295
\nrupiah\/kg on Friday, and palm olein varied from 3,850-4,400
\nrupiah\/kg.<\/p>\n
The Indonesian rupiah was quoted at around 10,500\/11,000 to
\nthe dollar in late Friday trading.<\/p>\n
\"We are watching what is going to happen next in the
\nIndonesian palm industry after the appointment of the new trade
\nand industry minister,\" another Malaysian trader said.<\/p>\n
The Malaysian market is also waiting for May 1-25 palm oil
\nexports data due on Monday.<\/p>\n
Traders said that although the market tone remains firm, a
\nrising domestic output could limit gains.<\/p>\n
Malaysia's benchmark, third month, August futures contract
\nclosed on Friday at 2,423 ringgit a tonne.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-palm-oil-markets-eye-indonesian-trading-1447893297",
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