Palm oil markets seen mixed<\/p>\n
KUALA LUMPUR (Reuters): Asian palm oil markets are likely to
\nbe mixed this week with news India may soon cut import duties on
\nedible oils and unexpectedly good Malaysian crop numbers seen
\ntriggering some short-covering, traders said.<\/p>\n
But news that Indonesia is to lift its palm-oil export ban
\nlater this month could continue to dampen prices, they said.
\nTraders said regional markets were also tracking currency
\nmovements.<\/p>\n
Industry officials in India said on Sunday the country may
\nsoon reduce import duties on edible oils from the present level
\nof 22 percent to 12 percent, a factor seen likely to boost
\nsentiment.<\/p>\n
Malaysia's Palm Oil Registration and Licensing Authority
\n(PORLA) is scheduled to release March palm oil
\noutput\/stock\/export data on April 15.<\/p>\n
Merchant traders estimate output in March to be around 595,000
\nto 605,000 tons, with stocks at 640,000 tons and exports at
\n610,000 tonnes -- above previous market expectations.<\/p>\n
"I feel there will be short-covering ahead of PORLA's March
\nnumbers on Wednesday. But after that, the Indonesian lifting of
\nthe export ban would have a dampening factor," a Malaysian trader
\nsaid.<\/p>\n
Indonesia announced on Thursday that it would remove its
\nexport ban on crude palm oil, olein and stearin by April 22.<\/p>\n
The lifting of the ban would be replaced with an export tax of
\nnot more than 40 percent, it said.<\/p>\n
He said expectations that Indonesian palm oil exports would be
\nmore competitive with the smaller tax had triggered a sell-off.<\/p>\n
More impact was expected to be seen this week as regional
\nplayers digested the news.<\/p>\n
Traders in Singapore differed in views after Indonesia's
\nannouncement.<\/p>\n
"The main factor supporting the market in the past few months
\nis the Indonesian ban. Now the ban will be lifted, people won't
\nbe so bullish," one trader in Singapore said.<\/p>\n
Another Singapore trader saw a softening market but said the
\nimpact would be only short-term.<\/p>",
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