Palm oil prices decline

Palm oil prices decline

LONDON (Reuters): Palm oil prices continued to drift lower on the European vegetable oil market yesterday following the lower close in Kuala Lumpur.

Traders said slow demand coupled with forecasts of high-than- expected Malaysian palm oil output during June depressed prices.

However, they were keeping a wary eye on Indonesia where a confrontation between Indonesian workers and the army could erupt after a labor leader threatened to bring thousands of workers onto the streets of Jakarta to demand President B.J. Habibie resign. The army said it will crush any such protest.

Crude palm oil cif Europe was $7.50 to $5 lower at midday while products were $7.50 to $12.50 lower.

Olein traded at $610 for 1/7 July and at $615 and $600 for full July.

Aug palm olein fetched $617.50, $615, $610 and $607.50, Aug/Oct $615, Nov $600 and Oct/Dec $600 a ton fob Malaysian ports.