PALM NEWS MALAYSIAN PALM OIL BOARD Wednesday, 27 Nov 2024

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MARKET DEVELOPMENT
Asian Cash Palm Oil Prices Mostly Flat; Trading St
calendar18-08-2004 | linkDow jones | Share This Post:

KUALA LUMPUR (Dow Jones)--Asian cash palm oil prices were mostlyunchanged Tuesday with trading interest in the Malaysian market stayingsluggish as participants wait for clearer price direction.Traders said market players are also waiting for news on India, wherethere has been talk of further crop damage due to weather problems andspeculation of a potential reduction in import duties."There been no trading done so far in the day. People are justwatching the (futures market) where one big player seems to want to pushit higher. As for India, there's been a lot of rumors, but so farstill no confirmation about anything," a trader said.At 0746 GMT, the benchmark November CPO contract was at 1,461 ringgit($1=MYR3.8) a metric ton, unchanged from Monday.The contract surged in the last few minutes of trading Monday.Participants prefer to wait on the sidelines Tuesday as they are wary ofanother bout of late speculative buying, traders said.Traders said a national holiday in Indonesia also sapped tradinginterest.Traders said price direction was uncertain as the market is now at aperiod when external factors such as developments in India and weatherconditions in the U.S. soybean belt have a major bearing.In recent days, there has been renewed concerns about damage toIndia's oilseed crop caused by poor weather.In July, a lack of rainfall fueled expectations the oilseed crop,which is harvested in September, would be lower this year.Rains have revived this month. However, there are now concerns of toomuch rain and flooding in several key oilseed growing regions, traderssaid.Rumors have also surfaced in recent days that the government may beplanning to reduce import duties on edible oils as part of efforts to steminflation.So far, there has been on confirmation from the government.In the cash market, CPO for August shipment was offered at 1,500ringgit ($1=MYR3.8) a ton, unchanged from Monday, delivered basis in SouthMalaysia.RBD palm olein for September shipment was offered at $430/ton,unchanged from Monday.RBD palm oil for September shipment was at $420/ton, also unchanged.