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NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

14/09/2004

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

Dow Jones

CATEGORY

HEADLINE

Asian Cash Palm Oil Prices Steady Amid Positive Ma
KUALA LUMPUR (Dow Jones)--Asian cash palm oil prices were steadyMonday, with products in Malaysia moving higher amid positive marketsentiment following the release of bullish supply and demand figures.Friday, cargo surveyors SGS (Malaysia) Bhd and Intertek TestingServices issued export estimates that were well above market expectations.The friendly export data were followed by another bullish reportMonday from the Malaysian Palm Oil Board, which said palm oil stocks fellin August, contrary to expectations of an increase.So far, the rise in palm oil prices has been modest, as profit takingby long position holders in the futures market has capped gains.However, some traders said they expect palm oil prices to hold steadyand gradually move higher in the coming weeks because there was still keendemand from consumers."In the cash market, the buyers are there. They are just waiting forthe right time to come in," a trader said."One thing is for sure - the market isn't going to move downwards,given the kind of figures we've had."At 0754 GMT, the benchmark November CPO contract on the Bursa MalaysiaDerivatives was at 1,498 ringgit ($1=MYR3.8) a metric ton, up MYR6 fromFriday.Earlier Monday, the MPOB said Malaysian palm oil exports in Augustrose 9.4% on month to 1.22 million tons.The MPOB said August palm oil output rose 3.8% on month to 1.32million tons, while end-August stocks fell 2.7% on month to 1.26 milliontons.The figures were considered friendly, as market players were expectinga rise in stocks.Private forecaster Palmis Management Bhd. had estimated end-Auguststocks at 1.305 million tons.The MPOB report came on the heels of estimates released Friday byIntertek and SGS which showed exports growing by nearly 50% on month toaround 450,000 to 470,000 tons in the Sept. 1-10 period.The estimates were well above market expectations of around 400,000tons.In the cash market, crude palm oil for September shipment was atMYR1,590/ton, up MYR5 from Friday, delivered basis in South Malaysia.RBD palm olein for September shipment was offered at $457.50/ton, up$2.50 from Friday.RBD palm oil for September shipment was offered at $447.50/ton, alsoup $2.50 from Friday.Prices weren't available for Indonesia because of a national holiday.Trading resumes Tuesday.