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.