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.