Traders angry over latest RI CPO twist<\/p>\n
LONDON (Reuters): Crude palm oil drifted lower at the opening
\nof the European vegetable oil market yesterday but participation
\nwas thin ahead of this evenings trade dinner in Rotterdam.<\/p>\n
Traders expressed anger at the latest twist in the Indonesian
\npalm oil export ban saga.<\/p>\n
On Thursday the Indonesian Forestry and Plantations Minister
\nSumahadi said that Bulog would distribute olein to the local
\nmarket and that 14 state-run plantations would supply their crude
\npalm oil to the designated processors which in turn would sell
\ntheir olein to Bulog.<\/p>\n
European traders at first saw this as a sensible move to
\ncontrol local prices and were under the impression that the
\nsurplus oil from the plantations would be available for export.<\/p>\n
However reports coming from Indonesia yesterday morning
\nsuggest that this will not be the case.<\/p>\n
Indonesian traders reported that many of their contracts have
\nbeen canceled and that they were unable to meet their shipment
\ncontracts as the plantations had been told not to deal with
\noutsiders.<\/p>\n
\"At first we thought the Indonesian government was going to
\nplay by the rules, but now they have moved the goal post yet
\nagain, they may as well have not lifted the ban at all,\" said
\none.<\/p>\n
\"I have no comment to make now,\" said another, \"this is a
\nmatter for the IMF.\"<\/p>\n
Under the terms of the agreement between the IMF and the
\nIndonesian government, Bulog was to lose its monopoly of all
\ncommodities, expect rice.<\/p>\n
Crude palm oil opened $5 down to unchanged after May traded at
\n$710 and $705 a ton cif Europe.<\/p>\n
Coconut oil started the day $5 to $10 up while soft oils were
\nunchanged to one guilder higher.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/traders-angry-over-latest-ri-cpo-twist-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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