Palm oil prices in Asia expected to firm this week<\/p>\n
KUALA LUMPUR (Reuter): Asian palm and laurics oils prices are
\nlargely expected to be firm this week, with good demand and
\napparent low stocks of palm olein seen aiding Indonesian prices,
\nregional traders said.<\/p>\n
Malaysia's palm market is closely watching the Palm Oil
\nRegistration and Licensing Authority's (PORLA) release of key
\nSeptember output\/stock\/export figures yesterday, with traders
\nexpecting supportive data.<\/p>\n
Philippine coconut oil prices are expected to be firm although
\nthe market may be vulnerable to profit-taking.<\/p>\n
Indonesian traders attributed the low level of olein stocks to
\nincreased exports of crude palm oil.<\/p>\n
\"Sellers are making reasonably good margins by exporting palm
\noil instead of processing it into olein for the local market,\"
\none Indonesian trader said.<\/p>\n
\"This has apparently put the squeeze on olein in Jakarta.\"<\/p>\n
Another Indonesian trader said there were several vessels
\nbringing palm oil into Jakarta but that it would take time to
\nprocess the oil into olein and channel it into the market.<\/p>\n
Indonesian palm olein closed at around Rp 1,385, against Rp
\n1,345-1,350 in Medan.<\/p>\n
Traders in Malaysia hope to get fresh leads from the official
\nPORLA numbers. Friday's crop report by forecaster Ivan Wong
\nfeatured virtually unchanged estimates, and had little impact on
\nthe market.<\/p>\n
\"All eyes are on the PORLA numbers. We hope that PORLA will
\nannounce supportive data to give the market a lead,\" a Malaysian
\ntrader said.<\/p>\n
Wong estimated a 13 percent rise in September output to
\n795,000 tons, against a previous forecast of 14 percent growth,
\nand end-September stock at 695,000 tons, against 700,000
\npreviously.<\/p>\n
\"Apart from PORLA, the market is also waiting fresh tenders
\nfrom Pakistan again,\" another trader said. Pakistan tendered for
\n6,000 tons of RBD palmoil for shipment up to October 20 twice
\nlast week, but did not buy because of unfavorable prices and a
\nlack of suitable vessels.<\/p>\n
\"Technically, the palm market remains strong, and more
\ntechnical buying and short-covering will emerge if December
\nfutures (third month on the Kuala Lumpur Commodity Exchange) hit
\nthe next resistance level of 1,420 ringgit,\" the trader said.
\nDecember futures closed at 1,405 ringgit\/ton on Friday.
\nPhilippine coconut oil prices are seen firm.<\/p>\n
\"Prices should be fairly firm. Despite the bullish support in
\nfundamentals, we might already be on the high side so there might
\nbe dips on profit-taking. The consumers are also not on the buy
\nside at the moment, a Philippine trader said.<\/p>\n
Philippines coconut oil prices hit $720 a ton CIF Europe last
\nweek, slightly higher than the $710 previously.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/palm-oil-prices-in-asia-expected-to-firm-this-week-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}