Palm oil prices fall in KL

Palm oil prices fall in KL

KUALA LUMPUR (Reuters): The palm oil market weakened yesterday, reversing Thursday's higher trend, on speculation that Indonesia may lift its ban on crude palm oil export soon, traders said.

The fall also reflected a technical correction to gains in recent days, boosted by a weak ringgit against the dollar.

"Selling and profit-taking appeared as people believed that Indonesia may lift the export ban soon," said a trader. "It (Indonesia) is considering the amount of export tax after the ban is being lifted and there is talk between Indonesia and IMF on the reforms. So I think the ban will be off real soon."

Indonesia banned the export of crude palm oil indefinitely in January to stabilize domestic prices, which have soared because of the declining rupiah.