No clear trend set for Asian palm oil prices
No clear trend set for Asian palm oil prices
KUALA LUMPUR (Reuter): There is no clear trend for Asian palm
and laurics oils, with the outcome of the World Oilseed Congress
in Malaysia this week possibly providing market direction,
regional traders said.
Barring news from the meeting, Philippines coconut oil prices
are seen supported by thin supplies. Indonesian palms are seen
steady to lower on uncertainties over what state commodities
regulator Bulog intends to do during the week.
Players are looking to the 68th World Oilseed Congress in
Kuala Lumpur this week for market-moving news, a trader said.
The Congress, to be held from Sept. 19 to 21, will discuss
industry issues for world oilseeds, oils and protein industries
into the 21st century with a focus on Asia and Southeast Asia,
the organizers said.
Malaysian traders said palm prices may firm early in the week
on lingering bullishness over the lower than expected end-August
stock figures released last Friday.
"But prices may fall back thereafter as the underlying
fundamentals remain weak. Palm oil production normally peaks
around this time of the year (September/November)," one said.
Traders said they were still puzzled over the lower Malaysian
end-August stocks figure released by the Palm Oil Registration
and Licensing Authority (PORLA) last Friday.
"PORLA's stock levels were below market expectations," one
trader said. PORLA said end-August stocks were 575,358 tons
against trade estimates of between 620,000 and 630,000.
Indonesian palm prices are expected to trade steady to lower
amid market uncertainties.
Indonesian traders said state commodities regulator Bulog had
rattled the market by saying it would buy crude palm oil at Rp
1,100/kg from the private sector to fill its buffer stock.
"Bulog's statement has made the market nervous because if it
buys palm oil at that price, it would mean that palm olein would
have to be around Rp 1,300/kg," one trader said.
Indonesian palm olein closed last week at Rp 1,345-1,350/kg in
Jakarta against Rp 1,350-1,360 previously.
Indonesian palmoil was sold at a local tender at Rp 1,195/kg
last week in Medan, against previous trade of 1,180.
Philippines coconut oil looks steady, traders said.
"Continuous rains in almost all parts of the Philippines have
made delivery of copra supplies difficult. Prices should remain
steady to firm," a trader in a major company said.
Prices of coconut oil in nearby months were in a range of
US$670-$675 a ton CIF Europe last week, largely unchanged from
previously. Any upward movement will not exceed $10-$15, traders
said.
They said origin sellers retreated to the sidelines due to the
bad weather. Many millers were refraining from entering the
market because of higher costs in making their deliveries,
another dealer said.