March 4 2004 - PAKISTAN is expected to buy up to 1.4 million tonnes ofpalm oil products, from both Malaysia and Indonesia, in 2004, up 3.2 percent from 3.1 million tonnes last year.

Pakistan was Malaysia’s fourth largest buyer last year with a volume ofone million tonnes. Palm oil products include crude palm oil (CPO),refined, bleached and deodorised (RBD) palm olein, palm kernel and RBDpalm oil.

Pakistan’s Mapak Qasim Bulkers plc chief executive and director AbdulRasheed Jan Mohammed said out of the 1.4 million tonnes, 75 per cent willcomprise of RBD palm olein, while the balance will be made up of RBD palmoil and CPO.

We also expect the market to remain strong in the near term with pricesbetween RM1,600 and RM1,800 a tonne, Rasheed told participants in KualaLumpur at the 15th annual Palm and Lauric Oil conference and exhibition.

Rasheed said this month will be a critical month as the industry awaitsthe South American soyabean harvest, which is predicted to drop to 57million tonnes from 61 million tonnes.

He added that June to August this year will also be critical for the UScrop, which no one can predict at the moment.

India is also expected to import around 4.25 million tonnes in 2004against 5.12 million tonnes last year, a drop of about one million tonnes,due mainly to India’s harvest of a record oilseed crop of about 23.5million tonnes against 14.9 million tonnes last year.

He said if soyabean prices continue to be more expensive by US$100-US$140(US$1 = RM3.80) a tonne over palm oil, the commodity would find difficultyin attracting demand. It will also affect palm oil which is the next bestsubstitute.

He added that if prices continue to remain firm and consumer countries donot reduce duties, it will also effect their purchasing power , which inturn will likely reduce their import volume.