MARKET DEVELOPMENT
13-02-2004
Asian Cash Palm Oil Prices Mixed; Mkt Rally In Mal
Kuala Lumpur, Feb. 13 (Dow Jones) - Asian cash palm oil prices weremixed Friday, with products in Malaysia mostly unchanged to slightly loweras participants await clearer market direction following recent sharpgains.Palm oil prices surged to five-year highs earlier this week, withcrude palm oil surpassing 1,900 ringgit ($1=MYR3.8) a metric ton.However, the market leveled off Friday as participants were uncertainover how much room was left for further gains."People have become a bit cautious after seeing the market go up somuch," a trader said.Traders said there was some buying interest in the cash market fromconsumers, particularly from Europe, late Thursday and early Friday."They came in earlier, but have since gone quiet. We're waiting to seewhether or not they will continue to buy," a trader said.Traders said keen consumer interest is necessary for the market tocontinue on its uptrend because so far, the rally has been largelytechnical in nature.They said they were still awaiting the return of buyers from China,one of the top two importers of edible oils.The Chinese government has set an import quota of 2.7 million tons for2004, up from 2.6 million in 2003."But up until now, the (import licenses) still haven't been issued yetto all the buyers," a trader said.Weaker soyoil futures at the Chicago Board of Trade Thursday alsosapped sentiment, keeping palm oil prices little changed.The March soyoil contract ended 46 points lower Thursday at 31.68cents a pound.In the cash market, crude palm oil for February shipment was offeredat MYR1,910/ton, up MYR5 from Thursday, delivered basis in South Malaysia.RBD palm oil for February and March shipment was offered at$522.50/ton, down $2.50 from Thursday.RBD palm olein for February and March shipment was offered at$532.50/ton, down $2.5 from Thursday.In Indonesia, RBD palm olein was offered at 4,750 rupiah ($1=IDR8,400)a kilogram, unchanged from Thursday.Traders said there were bids for CPO in Medan at IDR4,350/kg.Thursday, the government sold 1,000 tons of CPO at a semiweekly auctionfor as high as IDR4,427/kg.
