Palm oil markets seen bullish<\/p>\n
KUALA LUMPUR (Reuter): Asian palm oil markets were expected to
\nremain bullish this week as Indonesian forest fires raise
\nconcerns about the country's declining output, and on good
\nprospects for export business.<\/p>\n
Regional traders said strong palm offtake may come from India
\nand China in anticipation of tight supplies in coming months.<\/p>\n
\"We're going to see pretty strong prices this week,\" a dealer
\nfor a foreign commodity house in Singapore said.<\/p>\n
\"The Chinese and the Indians are still buying at a pretty
\nstrong level. And now, you have the fires in Indonesia,\" he
\nadded.<\/p>\n
Indonesian Agriculture Minister Sjarifudin Baharsjah said last
\nweek that forest fires that have blanketed Southeast Asia under a
\ncloud of smog have spread to palm oil plantations, threatening
\npalm oil output over the next year.<\/p>\n
Palm oil traders in Indonesia said the haze would also have an
\nimpact on the ripening of fruit on the palm trees.<\/p>\n
\"The haze which is caused by the fires has blocked the sun,
\nwhich hampers the development of the fruit,\" said one trader in
\nMedan, the capital of the key growing area of North Sumatra
\nprovince.<\/p>\n
\"Trees need sunlight but the smog is covering the light. Smog
\nhas been slowing down the fruits from ripening faster,\" the
\ntrader in Kuala Lumpur said. \"This means we may expect tight
\nsupply in coming months. How much? We don't know,\" he added.<\/p>\n
\"We expect to feel the decline in production next month.<\/p>\n
However, it is hard to make calculations on the percentage of
\nthe fall yet,\" added an Indonesian trader.<\/p>\n
Apart from the forest fires, the palm market is still driven
\nby currency factors, with regional currencies seen heading lower
\nagainst the dollar, dealers said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/palm-oil-markets-seen-bullish-1447893297",
"image": ""
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