Palm oil markets hold back

Palm oil markets hold back

KUALA LUMPUR (Reuters): Southeast Asian palm oil markets are likely to watch official Malaysian February crop data this week and look out for whether Indonesia lifts its ban on crude palm oil exports, regional traders said.

Malaysia's Palm Oil Registration and Licensing Authority (PORLA) will announce February's output, stock and export crop data at 0430 GMT on Monday.

"Palm players are waiting to see how the PORLA February numbers will be before taking up huge positions," said a senior trader in Malaysia. "We are unable to predict the data as PORLA can come out with many surprises. So just wait."

Crop forecaster Ivan Wong on Friday estimated February's output at 599,000 tons, end-February stocks at 740,000 tons and exports in February at 465,000 tons.

"And secondly, the market is waiting for news from Indonesia whether the government will lift the export ban as the new cabinet has been announced," the trader added.

Indonesia's President Soeharto announced his new cabinet on Saturday, appointing his close associate, timber tycoon Mohamad "Bob" Hasan, as industry and trade minister.

Indonesian traders said political developments there would also be the focus of attention this week. "This week we will see the new cabinet minister and we will find out how the market will react," said one trader in Indonesia.

"I think prices will stay at the same level. The market will wait (to see) what the new Trade and Industry Minister is going to do with the export ban of crude palm oil," said another Indonesia trader.

Indonesia has imposed an indefinite ban on the export of crude palm oil in order to stabilize prices and supply.

Indonesian palm olein price was quoted at 2,900 rupiah/kg last week.