SE Asia's palm oil prices seen mixed<\/p>\n
KUALA LUMPUR (Reuter): The Malaysian palm oil market is seen
\nsteady this week while Indonesian prices are expected to remain
\nsoft, regional traders said.<\/p>\n
They said bullish Malaysian exports data for March could help
\nprices early in the week.<\/p>\n
Cargo surveyors, SGS (M) Sdn Bhd and Caleb Brett are due to
\nrelease March palm oil export figures yesterday.<\/p>\n
"People are optimistic of a bullish March export data," said a
\ntrader in Kuala Lumpur.<\/p>\n
Vegetable oil dealers said some support may gradually emerge
\nfrom traditional buyers.<\/p>\n
"I'm seeing some steadiness in the market. You're beginning to
\nsee some support at the low numbers," the general manager of a
\nvegetable oil company in Singapore said.<\/p>\n
Demand has been steady, but not spectacular, traders said.
\n"I think Chinese offtake is reasonable," a trader said, adding
\nthat demand from Europe, Pakistan and India has been "fairly
\nsteady."<\/p>\n
Some traders, however, said gains could be limited as the
\nfundamental outlook remains uncertain with production in coming
\nmonths seen rising.<\/p>\n
Malaysian private crop forecaster Ivan Wong had estimated
\nMalaysia's palm oil output in March to rise by 25 percent to
\n630,000 tons after a fall of 13 percent in February.<\/p>\n
Malaysia's benchmark third month June futures closed on Friday
\nat 1,245 ringgit a ton. Malaysian traders expect the contract to
\ntrade between 1,240 and 1,265 ringgit this week.<\/p>\n
Most of the trade discounted speculation by some market
\nplayers the June contract will approach the floor of 1,200
\nringgit a ton. "I'd be surprised to see it at 1,200 ringgit," one
\nsenior trader said.<\/p>\n
Indonesian palm olein prices are likely to remain soft on
\nsustained weak demand, traders said.<\/p>\n
"I think prices will remain stable or maybe weaken a little,"
\none trader said. "Demand has been weak, while export prices have
\nbeen declining."<\/p>\n
He said there was no refining margin at current palm olein
\nprices, adding that refiners would be making losses if palm olein
\nvalues continued to decline.<\/p>\n
Another trader said there was still some downside left in palm
\nolein prices, adding that demand had been weak since the Moslem
\nEid al-Fitr celebrations in early February.<\/p>\n
"If demand continues to remain poor, there's a possibility
\nolein prices will weaken further," he said.<\/p>\n
Palm olein finished the week at Rp 1,390-1,395 (US$0.58) a kg
\nin Jakarta, unchanged from a week earlier after four straight
\nweeks of decline.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/se-asias-palm-oil-prices-seen-mixed-1447893297",
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