Palm oil prices bubble on Indonesia export ban<\/p>\n
LONDON (Reuters): Prices for palm oil, used extensively in
\nsoap and cooking oil manufacture, moved sharply higher on Monday
\nafter leading producer Indonesia banned exports for the first
\nquarter of 1998.<\/p>\n
But elsewhere in commodity markets most prices were drifting
\nlower in very thin between-holiday trading conditions.<\/p>\n
Indonesia's Industry and Trade Ministry had sent a letter to
\ntop producers in the country telling them to supply their entire
\ncrude palm oil production to the domestic market.<\/p>\n
Indonesia's own demand for cooking oil usually booms in the
\nfirst quarter due to traditional celebrations and feasting at the
\nNew Year and Eid al-Fitr festivals.<\/p>\n
On the Malaysian palm oil futures market the benchmark March
\nposition closed 31 ringgit up at 2,078 ringgit a ton, although
\nsome traders warned that high prices above 2,000 ringgit were
\nunsustainable due to competition from other vegetable oils.<\/p>\n
European traders estimated that around 150,000 tons of palm
\noil was due to be exported to Europe in the first quarter, and
\nthe possibility that this may not arrive pushed European prices
\nhigher.<\/p>\n
On the off-exchange dealer market crude palm oil CIF Europe
\nwas trading around $25 a ton above pre-Christmas holiday levels
\nat $572.50 for January through to June shipment.<\/p>\n
In Kuala Lumpur, Malaysian palm oil prices were little changed
\nat noon yesterday, with players trading cautiously ahead of the
\nNew Year despite bullish sentiment.<\/p>\n
Traders said an imminent correction was expected in the market
\nby both buyers and sellers and this had kept prices boxed in a
\nrather narrow range.<\/p>\n
They said news of Indonesia's export ban on crude palm oil for
\nthe first quarter of 1998 had already been factored into the
\nmarket, although it was keeping sentiment firm.<\/p>\n
The physicals market was also quiet.<\/p>\n
Jan (south) crude palm oil was offered at 2,095 ringgit a
\nton against bids at 2,085.<\/p>\n
Jan (central) saw offers at 2,090 ringgit and bids at 2,080.<\/p>\n
Feb (south) was offered at 2,115 ringgit against bids of
\n2,090.<\/p>\n
Feb (central) saw offers at 2,115 ringgit against bids of
\n2,090.<\/p>\n
Jan (north) was offered at 2,085 against bids of 2,075.<\/p>\n
Chicago's CBOT soyoil futures ended higher on news of a halt
\nin Indonesian palm oil exports and soymeal futures ended sharply
\nlower Monday on fund sales, traders and analysts said.<\/p>\n
\"I think the (soy)oil gained on the meal because of what is
\nhappening in Indonesia with palm oil,\" said Sid Love, analyst
\nwith Kropf and Love consulting in Overland Park, Kan.<\/p>\n
Soymeal futures ended $2.00 to $4.00 a ton lower, with March
\ndown $3.80 at $203.40. Soyoil ended 0.09 to 0.16 cent a lb
\nhigher, with March up 0.11 at 25.55 cents.<\/p>",
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"sponsor": "Okusi Associates",
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