Malaysian palmoil prices up again

Malaysian palmoil prices up again

KUALA LUMPUR (Reuter): Palmoil prices rebounded at midday
yesterday on shortcovering after sharp recent falls but traders
said the upside could be limited by lack of keen demand and
competition from Indonesian oil.

"Prices were up this morning as buyers tried to cover from the
recent falls," a dealer said. "As today is Friday, we expect some
covering ahead of the weekend."

He added that the rebound was expected to be brief as
sentiment was bearish, due partly to competition from major
producer Indonesia.

"Indonesia's production is seen picking up and the forecast is
likely to increase this year," said a Kuala Lumpur-based refiner.
"Indonesian dealers have to find a way to sell."

Traders in Jakarta said the market was offering competitive
rates for overseas tenders because of bearish prices. "They want
to offload quickly instead of waiting for prices to recover,"
said a Jakarta trader.

Local dealers said weak fundamentals such as a build-up in
stock and expectation of small declines in January's output over
December could restrict sharp gains.

Some plantations houses estimated January's output to fall by
five to eight percent from December against earlier estimates of
10 percent.

The market is awaiting a crop report by private forecaster
Ivan Wong on Monday to provide more estimates on output, stocks
and export, traders said.

At midday close, April futures rebounded eight ringgit to
close at 1,163 ringgit (US$455.18) a ton.

Physicals January crude palmoil (south) was offered 1,160 a
ton. Among refined products, January RBD palmoil was offered at
$467.50 a ton, FOB Malaysia, February at $472.50 and March at
$480.

February RBD palm olein saw sellers at $485, March at $490,
April/May/June at $502.50. March was traded at $490.

February/March RBD palm stearin was offered at $420 and
February/March fatty acid distillate at $382.50.