Revision Of MYR Peg Negative For CPO Prices(Dow Jones)--Calls for review of ringgit exchange rate continue, withMalaysia's Institute for Economic Research reiterating government shouldremove peg as soon as possible; MIER says ringgit currently 10%-12%undervalued. Any revision to a stronger rate will have negative impact onCPO prices in Malaysia, palm oil traders say. Since palm oil products areexported in dollar terms, ringgit-denominated CPO prices will have to beadjusted downwards to maintain margins.
Malaysia Bio-Diesel Act May Be Ready By July(Dow Jones)--Malaysia's Plantation Industries and Commodities Ministryaims to have Bio-Diesel Act ready for tabling in Parliament in July,Business Times reports. Minister Peter Chin Fah Kui quoted as saying Actaimed at encouraging blending of palm oil, petroleum diesel, adding thatproposed biodiesel program could reduce country's CPO stockpile by as muchas 500,000 tons. No further details on program provided. Traders say ifsuccessful, reduction of stockpile would have positive impact on palm oilprices.
Brazil Drought To Persist, Bad For Soy Crop(Dow Jones)--Concerns about Brazil soybean output likely to persistafter Somar Meterologia weather services says although cold front expectedto reach southern Brazil this weekend, won't eliminate drought in region.Another cold front expected early next week, but also not expected tobring significant volumes of rain. Continued lack of rains suggests cropdamage likely, which positive for edible oil prices.
Malaysia Feb 1-25 Palm Oil Exports Seen Up(Dow Jones)--Players in palm oil market speculating Feb. 1-25 exportestimates for Malaysia from cargo surveyors Intertek, SGS due tomorrowlikely around 875,000-900,000 tons, slightly up from 820,000-840,000 tonsin month-ago period. Optimistic export projections having no immediatepositive impact on market as offset by talk of strong output in February,traders say.