Malaysia palmoil prices increase

Malaysia palmoil prices increase

KUALA LUMPUR (Reuter): Malaysian palmoil prices rose in late
trading and closed higher yesterday as rumors of tight supply in
Indonesia and buying by some Pakistan private parties prompted
shortcovering, traders said.

"Shortcovering and trade buying emerged on talk that there is
a supply squeeze in Indonesia," a trader said. "Rains are said to
have delayed CPO deliveries," he said.

Sentiment was supported by rumors that some Pakistani traders
have bought some RBD palmoil for December shipment, dealers said,
but were unable to provide further details.

"Purchases by Pakistan private parties are normally direct
deals with sellers," a dealer said. Trading volume on the futures
market was 1,936 lots against 2,287 on Tuesday.

The market was also underpinned by continuing talk that China
has cut its import duties on palmoil to 13 from 20 percent,
dealers said.

Prices were marked up in late Tuesday trading on the Chinese
import duty cut rumor. Traders said this has prompted fresh
buying interest from China for RBD palmolein for December/January
shipment. The market is awaiting confirmation from the Chinese
authorities.

News of Egypt's purchases overnight also supported prices.

Egypt bought 20,000 tons of palm stearin for second half
January delivery -- 10,000 tons from Malaysia's Pan-Century and
10,000 from a Singapore firm at US$546 C & F per ton.

Morning prices were slightly easier as players liquidated
their positions ahead of two cargo surveyors' Caleb Brett and SGS
(M) Sdn Bhd release of November palmoil export data which is due
out on Friday.

"We don't expect to see good export figures for November, a
dealer without giving any export estimate.

Third month February futures rose nine ringgit to 1,389
ringgit ($546.42) a ton.

Physical saw business among nearby CPO but little interest was
noted in products. December crude palmoil (south) was offered at
1,410 ringgit after trading from 1,400 to 1,405.

In refined products, December RBD palmoil was offered at $570
a ton FOB Malaysia and January/February/March at $575. December
was dealt at $565. Traders said December RBD palmolein was
offered at $590 and January/February/March at $595. December RBD
palm stearin noted offers at $520 and January/February/March at
$512.50. December/January palm fatty acid distillate was offered
at $410.