World sugar prices steady on Indonesian news
World sugar prices steady on Indonesian news
NEW YORK (Reuters): CSCE world sugar prices were called to
open barely changed yesterday, with news Indonesia will hold a
tender today for 200,000 tons of whites and 30,000 tons of raws
said to be constructive, dealers said.
"The market has some underlying support. The Indonesian tender
is a bit constructive," a CSCE floor trader said.
The tender may give the market a bit of a boost later in the
day, dealers said.
Indonesia had recently announced plans to buy 500,000 tons of
raws and 200,000 tons of whites, but details were not made
immediately available.
German-based commodity statistician said F.O. Licht said,
however, that the tender would be for 300,000 tons of raws.
It said the likely source of the whites would be Brazil, China,
Pakistan and Thailand.
The market may also get some support from London white sugar
prices with LIFFE's key October contract up $1.60 to $250.20 a
ton at 0918 EDT.
CSCE October sugar had settled on Tuesday 0.09 cent up at 8.53
cents a lb, after trading between 8.59 and 8.37 cents.
March 1999 gained 0.04 to 9.02 cents and the rest of the board
rose 0.05-0.03 cent.
Raws were slightly up at the close because of light trade and
commission-house buying in a dull market.
The nine-day relative strength index (RSI) of October sugar
stood at 49 at the close of trade Tuesday, up from the previous
reading of 46.
An RSI figure of 70 or higher is normally an indication the
market is overbought while a reading of 30 or below normally
meant it is oversold.
Indonesia's sugar imports are expected to fall 25 percent this
year because of soft demand during the currency crisis, a report
said.
Palm oil firm
Meanwhile, palm oil prices were firm in Europe at midday
yesterday following a tender for palm olein by India's State
Trading Corporation (STC).
The STC is seeking 16,000 tons of palm olein for first
half/last half August shipment after passing at its tender on
Monday for a similar amount of olein for August/September
shipment. Traders said the STC passed because it received no
offers for shipment before August 15.
Egypt was also in the market on Wednesday, seeking 50,000
tonnes of palm oil and 10,000 tonnes of palm stearin.
The result of both tenders was expected later in the day.
Apart from some trading in palm olein, traders said the market
was quiet ahead of the tender results.
Crude palm oil cif Europe was $5 to $10 up at midday while RBD
palm oil cif offers were $5 to $12.50 up.
On the fob market RBD palm oil was unchanged to $5 up and
olein $7.50 to $2.50 higher after 1/7 Aug traded at $672.50 and
$675, last half Aug at $660, Sep at $650 and $652.50 and Oct/Dec
at $632.50 a ton fob Malaysian ports.
Palm stearin fetched $450 for 1/7 Aug, $450 and $452.50 for
full August and $450 and $452.50 a ton fob Malaysian ports for
Sept.
Forecasts calling for lower coconut oil output in 1998/99
triggered some early trade and a slight hardening in prices.
The Hamburg-based weekly newsletter Oil World forecast a drop
of 0.5 to 0.6 million tons in 1998/99 Philippines and Indonesian
copra output.
At midday coconut oil sellers were $5 up to unchanged after
Sep/Oct traded at $677.50 and Oct/Nov at $687.50 a ton cif.