Fuel talk lifts Malaysia palmoil<\/p>\n
KUALA LUMPUR (Reuters): Fresh talk about the immediate use of
\ncrude palm oil (CPO) as fuel and bullish exports data for the
\nfirst 25 days of March triggered covering on Malaysia's palm oil
\nfutures, traders said on Tuesday.<\/p>\n
\"I don't know who started it, but people are now talking about
\nTenaga using CPO as fuel in two weeks' time. The export figures
\nalso gave a boost to the market,\" said one trader in Kuala
\nLumpur.<\/p>\n
Officials at Tenaga Nasional Bhd, which is Malaysia's largest
\npower firm, could not be reached for comment on Tuesday. An
\nofficial at the firm said last week that Tenaga was expected to
\ngive a news conference on the issue soon.<\/p>\n
The Malaysian government said recently it had asked Tenaga to
\nburn 400,000 tons of CPO as fuel this year to erode a build up of
\nexcessive oil stocks in the country.<\/p>\n
This is expected to start in April when Tenaga is scheduled to
\nburn 50,000 tons.<\/p>\n
But many traders said Tenaga would have to set up a plant to
\ntreat CPO to make it easy to burn, which means the government's
\nassurance the firm could directly use the oil as fuel were out of
\nthe question.<\/p>\n
The benchmark third-month June futures rose 34 ringgit at 864
\nringgit ($227.37) a ton. Volume was heavy at 2,069 lots.<\/p>\n
Earlier, cargo surveyor Societe Generale de Surveillance
\nMalaysia Sdn Bhd (SGS) said Malaysian palm oil exports in the
\nfirst 25 days of March were at 780,762 tons against 717,737 for
\nthe same period in February.<\/p>\n
SGS said it estimated the exports from the shipment of 150,196
\ntons of RBD palm oil, 299,750 tons of RBD palm olein and 43,449
\ntons of RBD palm stearin tracked during the period.<\/p>\n
Physical March (south and central) was offered at 835 ringgit
\nagainst bids of 830. Trade was reported at 825 to 830 for both
\nregions.<\/p>\n
April (south and central) was offered at 835 ringgit and bid
\nat 830, and trade was reported at 825 to 830 for both regions.<\/p>",
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