KL palm mixed despite reports of RI oil ban

KL palm mixed despite reports of RI oil ban

KUALA LUMPUR (Reuters): Malaysian palm oil prices ended mixed on Thursday despite reports that Europe has effectively banned imports of Indonesia crude palm oil.

Traders reported selling due to softer soyoil prices although speculative buying was seen at the lower levels.

"The market looks very uncertain. (Reports that) Europe has banned imports from Indonesia has no strong impact today," said a trader in an exporting firm.

But in the long-term, it could be good for the local market as European buyers may buy more from Malaysia.

"The chances will be high that the Europeans will buy our crude palm oil if the problems are not solved," said a trader.

Indonesian traders said on Thursday that Europe has effectively banned imports of Indonesian crude palm oil after the discovery of shipments adulterated with diesel fuel.

Europe has effectively banned imports of Indonesian crude palm oil after the discovery of shipments adulterated with diesel fuel, traders said on Thursday.

"It's not on paper, but European buyers have effectively banned our palmoil. They don't want to buy our oil anymore...you can't help it but see this as a ban," said one trader in Jakarta.

"European countries are very sensitive when it comes to food, that's why you don't see any new shipments from Belawan. End- users in Europe just do not want to buy our oil," he said.

Exports from Indonesia's main export port in Belawan in North Sumatra stopped in October after contaminated crude palm oil was discovered in Rotterdam port, where the oil is transported to buyers in Europe.

The volume of tainted oil shipped to Europe hit 85,000 tons in November compared with 19,000 in October. It was found in shipments to the Netherlands, Spain, Germany, Britain and Italy.

Traders said some covering was seen at lower levels on expectation of more falls in the November and December output. Traders estimated November output to be down 10 percent to 15 percent from October, and December's production to be down 18 percent to 20 percent from November.

By the close, third month February was down three ringgit at 1,244 ringgit (US$328.16) a ton after trading between 1,236 and 1,258 ringgit.

The physical sector saw December (south) crude palm oil offered at 1,250 ringgit against bid of 1,245 with earlier trades done at between 1,240 and 1,260.

Among refined products, December Refined, Bleached and Deodorized palm oil was offered at $352.50 a ton FOB and Jan/Feb/Mar at $355.