Concerns over unrest keep palm oil stable

Concerns over unrest keep palm oil stable

LONDON (Reuters): Concerns over unrest in Indonesia served to keep the palm oil sector very firm in Europe yesterday, despite slightly bearish data from private forecaster Ivan Wong.

Malaysia's palm oil production is estimated to have risen by 2 percent to 611,000 tons in April from March, private forecaster Ivan Wong said.

End-April stocks were estimated at 595,000 tons against the Palm Oil Registration and Licensing Authority's (PORLA) 623,989 tons at end-March.

"The Ivan Wong data had had very little impact. The market is still almost completely focused on the situation in Indonesia," one trader said.

Another firm close on the Malaysian palm oil futures market also underpinned the European market.

At midday the European palm oil sector was US$$5 to $10 firmer than Thursday's close. The majority of the reported trade was once again confined to palm olein, which saw $727.50 and $720 paid for June, $710 up to $717.50 for July/Sept., and $692.50 for Oct./Dec.

Other palm oil business saw $710 paid for crude palm oil, while RBD palm oil changed hands for $682.50 for July/Sept.

The soft oils supported by the palm oils, received an additional boost from a firm close on the back of commodity fund buying on the Chicago soybean oil futures on Thursday.

At midday the soft oil were one to two guilders firmer. Only rape oil attracted any trade, with 135 guilders paid for both Aug./Oct. and Nov./Jan.