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.