Palmoil quiet in Europe as traders watch Indonesia

Palmoil quiet in Europe as traders watch Indonesia

LONDON (Reuters): Crude palm oil sellers were unchanged at the opening of the European vegetable oil market yesterday despite the increasing unrest in Indonesia.

"The crude palm oil market, which you expect to be most affected by the Indonesian crisis, is quiet with very few buyers about," said one trader.

Traders said most players were sidelined and awaiting developments.

"People seem to be waiting to see what happens over the weekend," said another trader.

On Malaysian production, private forecaster Ivan Wong stuck to his estimate of a two percent increase in local palm oil output during April. On Wednesday a poll carried out by Reuters among five leading plantation companies put out at five percent up from March.

Wong estimated April Malaysian palm oil output at 611,000 tonnes, up two percent from March, while stocks were projected at 595,000 tonnes against 623,989 in March. Exports were estimated at 545,000 tonnes against 582,713 tonnes in March.

The Malaysian Palm Oil Registration and Licensing Authority will release its official April data on Friday.

In the products sector RBD palm oil fetched $685, $682.50 and $680 a ton fob Malaysian ports for June while June olein traded at $712 and $715, July/Sep at $700 and $697.50 and Oct/Dec at $680 a ton fob.

Lauric oils were little changed with sellers $5 to $10 up while soft oils were 0.50 guilders up to 0.50 guilders down.

In Jakarta, palm olein market was at a standstill yesterday after riots in Jakarta and tensions in the key commodity trading city of Medan, traders said.

Traders said there were rumors of riots in Medan, but these proved to be unfounded.

"It was tense in Medan. People suddenly rushed home after hearing rumors that riots had broken out. It is terrible," said one trader in the city of two million.

"Telephone lines were suddenly busy. Everybody ran away from the offices. Streets were jammed and it was very chaotic. Troops were on guard," said the trader.

The trader said a crude palm oil (CPO) tender was delayed because of the rumors.

No trading was reported in Jakarta because traders did not show up at their offices.

Rioting broke out in Medan last week after the government increased the prices of fuel and transportation. The riots, which died down later in the week, disrupted the transport of CPO to refiners and the Belawan port, the main exit for exports. Belawan was safe on Thursday, port officials said.