Commex: No govt intervention to boost palm oil prices

09 March 2001 (Business Times) - Palm oil prices are determined by marketforces and the Government has not intervened in the market to support thecommodity, according to an official of a local exchange.

Commodity and Monetary Exchange of Malaysia general manager Raghbir SinghBhart said as far as the exchange is concerned, there has been nointervention by the Government.

Raghbir was commenting on market rumours that the Federal Land andDevelopment Authority (Felda) and the Federal Land Consolidation andRehabilitation Authority (Felcra) have been supporting the palm oilmarket, pushing up prices to RM800 a tonne on Wednesday, the first timesince January.

"However, there is no ruling preventing government agencies from takingpositions in the market," he told reporters in Kuala Lumpur on Wednesday.

Raghbir also said there has been "a marked increase" in participation byIndonesia at Commex for the past several months because the country has nofutures market.

Malaysia and Indonesia are the world's first and second largest producersof palm oil respectively, with a combined yearly output of around 20million tonnes.