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.