Palm oil markets seen mixed

Palm oil markets seen mixed

KUALA LUMPUR (Reuters): Asian palm oil markets are likely to
be mixed this week with news India may soon cut import duties on
edible oils and unexpectedly good Malaysian crop numbers seen
triggering some short-covering, traders said.

But news that Indonesia is to lift its palm-oil export ban
later this month could continue to dampen prices, they said.
Traders said regional markets were also tracking currency
movements.

Industry officials in India said on Sunday the country may
soon reduce import duties on edible oils from the present level
of 22 percent to 12 percent, a factor seen likely to boost
sentiment.

Malaysia's Palm Oil Registration and Licensing Authority
(PORLA) is scheduled to release March palm oil
output/stock/export data on April 15.

Merchant traders estimate output in March to be around 595,000
to 605,000 tons, with stocks at 640,000 tons and exports at
610,000 tonnes -- above previous market expectations.

"I feel there will be short-covering ahead of PORLA's March
numbers on Wednesday. But after that, the Indonesian lifting of
the export ban would have a dampening factor," a Malaysian trader
said.

Indonesia announced on Thursday that it would remove its
export ban on crude palm oil, olein and stearin by April 22.

The lifting of the ban would be replaced with an export tax of
not more than 40 percent, it said.

He said expectations that Indonesian palm oil exports would be
more competitive with the smaller tax had triggered a sell-off.

More impact was expected to be seen this week as regional
players digested the news.

Traders in Singapore differed in views after Indonesia's
announcement.

"The main factor supporting the market in the past few months
is the Indonesian ban. Now the ban will be lifted, people won't
be so bullish," one trader in Singapore said.

Another Singapore trader saw a softening market but said the
impact would be only short-term.