Palm oil prices rise slightly<\/p>\n
LONDON (Reuter): Palm oil prices in Europe were barely changed
\nyesterday morning from the previous day's close following the
\nrelease of the latest Malaysian output, stocks and export data.<\/p>\n
Figures released by the Malaysian Palm Oil Registration and
\nLicensing Authority (PORLA) had little impact although at first
\nthey appeared bullish.<\/p>\n
PORLA put stocks at 689,633 tons at end-March against 723,399
\ntons at end-February.<\/p>\n
Exports were running at 565,219 tons during March against
\n380,267 tons in February, PORLA said.<\/p>\n
PORLA said Malaysian palm oil output during March had risen by
\n35.71 percent to 683,196 tons.<\/p>\n
Ivan Wong in his last estimate for March had forecast a rise
\nof 32 percent while the Malaysian Oil Palm Growers' Council
\n(MOPGC) projected an increase of 33 percent.<\/p>\n
Traders said that based on the stock figure the report had
\nlooked bullish, but when they had time to stand back and look at
\nthe output they changed their view.<\/p>\n
\"The stocks look bullish, but if output is running at 683,196
\ntons now it could well be around 800,000 a month during the main
\nproduction period of July through to October,\" said one trader.<\/p>\n
Traders said Malaysian exports were not running at a high
\nenough level to take up the increased production and the market
\nwould have to adjust downward as a result.<\/p>\n
\"A lot of countries who normally buy palm oil are buying
\nsunflower oil and other soft oils because they are more
\ncompetitive.\" said another trader.
\nCurrently sunflower oil is around $512.50 to $515 a ton fob
\nagainst olein's $570 to $580 a ton.<\/p>\n
\"I think we are going to see a slow change back to long term
\nfundamentals on the palm oil market against the current trend of
\nday to day sentiment driven prices,\" said one trader.<\/p>\n
However, other traders said they had been saying this for some
\ntime now and so far it has not happened.<\/p>\n
Traders said Malaysian output was likely to increase further
\nwith the young plantations in the east reaching their prime while
\nthe older trees were still performing well.<\/p>\n
\"Also you have to look at Indonesia where a lot of the new
\nplantations are getting into their stride,\" said one.<\/p>\n
On Tuesday morning crude palm oil cif Erope opened mixed at
\n$2.50 up t<\/p>",
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"sponsor": "Okusi Associates",
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