Asian palmoil prices seen up on PORLA data

Asian palmoil prices seen up on PORLA data

KUALA LUMPUR (Reuter): Asian palm oil markets are likely to
firm this week, with fresh buying seen at the opening after the
weekend release of supportive Malaysian official January crop
data, regional traders said.

On Saturday, Malaysia's Palm Oil Registration and Licensing
Authority (PORLA) announced lower-than-expected end-January palm
oil stocks of 696,272 tons, down from 794,454 tons at end-
December, and against trade estimates of 710,000-720,000.

"PORLA's end-January stocks were lower," a Malaysian trader
said. "Prices are expected to open higher on Monday."

PORLA said output in January fell 9.57 percent to 576,967 tons
from December, while exports were 551,665 tons.

Singapore traders said palm oil prices will be looking for
leads with some people looking for Chinese buying to emerge.

A Singapore dealer at a European trading house said some
buying support may begin to emerge in the market as the trade
bounces back from the long celebrations of the Lunar New Year.

"The underlying tone is firm because I think there are still
some Chinese positions open going into this week," the dealer
said.

The benchmark third position May futures contract on the Kuala
Lumpur Commodity Exchange closed on Friday at 1,301 ringgit a
ton.

Indonesian prices are expected to trend steady to higher as
the market continues to adjust to relatively high crude palm oil
prices, traders said.

"I see prices touching 1,500 rupiah/kg (US$0.63) this week,"
an Indonesian trader said. "Olein has to adjust higher because of
the high price of crude palm oil."

Indonesian palm olein finished last week at 1,480-85 rupiah/kg
in Jakarta, up from 1,450-55 the previous week. Crude palm oil
was at 1,303 rupiah, up from 1,270.

Key market players decided at an informal meeting on Wednesday
in Jakarta to raise the olein offer price to 1,500 rupiah, as
there was no margin in processing crude palm oil for the local
market following its price hike.

Traders in Indonesia said they had since been selling at below
the 1,500-rupiah level after buyers shied away.

Palm olein was expected to keep its upward momentum this week,
but was unlikely to breach the 1,500-rupiah level.