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News Admin
 
Date
 24/07/2001
News Provider
 Mahamad Rodzi Abdul Ghani
News Source
 Reuters
Headline
 Malaysia's palm oil recovers on Indonesian crisis

Malaysia's palm oil recovers on Indonesian crisisKUALA LUMPUR, July 23 (Reuters) - Malaysian palm oil futures reboundedfrom early lows on Monday as political tension in neighbouring Indonesiasparked talk of supply disruptions, traders said.By the midday break, the third-month October contract eased seven ringgitto 1,140 ringgit ($300) a tonne compared with Friday's closing at 1,147ringgit. It had traded as low as 1,116 ringgit in the morning in reactionto the fall on the Chicago Board of Trade (CBOT). Volume was 1,096 lots."The market should have collapsed because of Chicago. But people were notcomfortable to sell at the lower level and used the political crisis inIndonesia as an excuse to cover back," said one trader in Kuala Lumpur."Anyway, I am sure the market will come down if Megawati takes over," headded, referring to Indonesia's Vice President Megawati Sukarnoputri.In Jakarta, the head of Indonesia's top assembly said on Monday a newpresident would be installed at 1:30 p.m. (0630 GMT). But the announcementcreated immediate confusion since legislators have yet to formally sackthe embattled incumbent President Abdurrahman Wahid.Assembly speaker Amien Rais made the comment just before adjourning amorning session of an impeachment hearing against President Wahid where amajority of parties have already informally urged his ouster.No formal vote has been taken.Indonesia is the second largest palm oil producer after Malaysia.Political tension in Indonesia overshadowed earlier expectations thatinfluential private forecaster Ivan Wong would cut down his estimates forJuly palm oil output by five percent when he released a fresh estimateslater on Monday.Wong has put the July crop at up to 1.03 million tonnes against 924,855tonnes last month.In the physical sector, most sellers preferred to take a wait and seestance while watching the situation in Indonesia.August/September crude palm oil for the southern region saw bids at 1,150ringgit. Sellers did not provide price quotations, but deals were heard at1,145 to 1,150 ringgit.August/September CPO for the central region saw offers at 1,160 ringgitagainst bids of 1,150. Deals were reported at 1,145 for both regions.Among refined products, August/September RBD palm oil was offered at $325a tonne. There were offers for August/September RBD olein at $347.50,while August RBD palm stearin was offered at $242.50.July palm fatty acid distillate was offered at $195.

 


 


 



ECONOMICS & INDUSTRY DEVELOPMENT DIVISION
Malaysian Palm Oil Board ( MPOB ) Lot 6, SS6, Jalan Perbandaran, 47301 Kelana Jaya, Selangor Darul Ehsan, MALAYSIA.
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