MARKET DEVELOPMENT
23-06-2004
Asian Cash Palm Oil Prices Mixed;Malaysia Dn As Ke
Kuala Lumpur, June 22 (Dow Jones) - Asian cash palm oil prices were mixedTuesday, with products in Malaysia slightly lower, tracking declines inthe futures market.The Malaysian market also drifted downward because of the absence ofinterest from a large Indonesian-linked trading company, traders said.The company has been buying aggressively at high prices in recent days,but there was no sign of further interest from the company Tuesday,traders said.With other buyers unwilling to pay similarly high levels, prices easedslightly.Products in Malaysia were around $2.5 to $5 a metric ton lower while thebenchmark September CPO futures contract on the Bursa Malaysia Derivativeswas down 2 ringgit ($1=MYR3.8) a metric ton at MYR1,517.Traders said the market was choppy Tuesday as participants look tore-establish comfortable trading levels."(The Indonesian-linked company) has been chasing up the market. Butwhen they aren't around, then we don't know where the real levels shouldbe. People find it difficult to quote prices," a trader said.Traders said buying interest was also subdued since there were no newbullish leads. Friendly supply and demand figures issued Monday have beenfully factored into the market, they said.Monday, cargo surveyor Intertek Testing Services said Malaysian palm oilexports in the June 1-20 period totaled 628,541 tons, up 9.7% on month.Another surveyor, SGS (Malaysia) Bhd., pegged June 1-20 exports at 629,233tons, up 6.2% on month.Private forecaster Palmis Management Bhd. also issued a friendly cropreport Monday as it projected lower-than-expected stocks of 1.20million-1.21 million tons at end-June.In the cash market, CPO for June/July shipment was offered at 1,540ringgit ($1=MYR3.8) a ton, up MYR5 from Monday, delivered basis in SouthMalaysia.RBD palm oil for July shipment was offered at $427.50/ton, down $2.5from Monday.RBD palm olein for July shipment was offered at $435.00/ton, down $2.5from Monday.In Indonesia, the government sold 2,500 metric tons of crude palm oilat a semiweekly auction, said an official from PT Perkebunan Nusantara,the agency that sells palm oil from state-run plantations.PT Pacific Palmindo Industri bought 1,000 tons, free on board Belawan,at3,945 rupiah ($1=IDR9,400) a kilogram.PT Bukit Kapur Reksa bought 500 tons, FOB Dumai, at IDR3,945/kg.PT Multimas Nabati Asahan bought 500 tons, ex-plantations, atIDR3,852/kg.PT Nubika Jaya bought 500 tons, ex-plantations, at IDR3,889/kg.Tuesday's auction prices are as much as IDR160 higher than the pricesin the previous auction Thursday.RBD palm olein in Jakarta was offered at IDR4,525/kg, up IDR75 fromMonday.
