KL palm oil up, RI a concern<\/p>\n
KUALA LUMPUR (Reuters): Malaysian palm oil prices rebounded on
\nshort-covering to end slightly higher on Thursday.<\/p>\n
Concern over Indonesian crude palm oil contamination held
\nprices in a tight range as players awaited further developments,
\ntraders said. "Some covering was seen at the lower levels. But
\npeople are concerned over Indonesian palm oil," said a trader.<\/p>\n
Industry sources said on Thursday Indonesia had delayed the
\nexport of 30,000 metric tons of crude palm oil from Belawan as it
\nintensified its probe on shipments of diesel-tainted oil to
\nEurope.<\/p>\n
"We've delayed shipments to take all precautions...to make
\nsure the upcoming shipments will be absolutely free of
\ncontamination," Derom Bangun, chairman of the Association of the
\nIndonesian Palm Oil Producers (Gapki), said.<\/p>\n
Earlier three cargoes from Belawan were found to be
\ncontaminated on arrival in Rotterdam since Oct. 4, and Dutch
\nauthorities have threatened to file a complaint with Jakarta.<\/p>\n
Malaysia's palm oil exports to Europe are expected to increase
\nif European buyers continue to have doubts over Indonesian oil.<\/p>\n
European traders said buyers were washing out contracts, or
\nselling back the shipment to Indonesian sellers, for the next two
\nor three weeks to give the market breathing space.<\/p>\n
There was talk of washouts of Indonesian contracts and the
\nmarket believed that European traders were seen buying Malaysian
\npalm oil for immediate requirements.<\/p>\n
Traders said falls in Chicago soyoil futures overnight and
\nlack of fresh news about demand from China and India sparked
\ninitial selling in a thin market.<\/p>\n
But late covering pushed third month January futures contract
\nup two ringgit at 1,178 ringgit (US$310.00) a ton by the close.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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