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NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

07/09/2004

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

Dow Jones

CATEGORY

HEADLINE

Asian Cash Palm Oil Prices Steady As Palmis Issues
06/09/04 KUALA LUMPUR (Dow Jones)--Asian cash palm oil prices weresteady Monday, with products in Malaysia unchanged to slightly higher,supported by a friendly crop report from private surveyor PalmisManagement Bhd.Keen buying interest for CPO in the Malaysian cash market also helpedsupport prices, traders said.Palm oil prices surged earlier last week to two-month highs, but fellsharply in the latter part of the week amid heavy speculative selling.The volatile price swings unnerved market participants and fueleduncertainty over market direction.Traders said in the short-term, palm oil prices may be steady tohigher, following Monday's friendly report from Palmis.Palmis estimated Malaysia's August CPO output at 1.31 million metrictons, up from the 1.27 million tons produced in July, traders familiarwith the latest Palmis report said.According to traders who obtained the data, Palmis estimated Augustpalm oil exports at 1.20 million tons, up from 1.11 million tons in July.Palmis pegged end-August stocks at 1.305 million tons, up slightlyfrom 1.27 million tons at end-July, traders said.Palmis is the only private palm oil crop forecaster in Malaysia, andits production, export and stock forecasts are closely watched by themarket.Traders said the figures were considered friendly, as the rise instocks in August wasn't as large as feared."There's quite a big drop in the stocks number compared to (Palmis')previous report," a trader said.In its previous report, Palmis estimated end-August stocks around 1.37million to 1.38 million tons, traders said.An official August supply and demand report is due to be issued by theMalaysian Palm Oil Board Sept. 13.Traders said, however, the Palmis report alone may not be enough tokeep the market on an uptrend for the rest of the week, as sentiment isstill cautious."The market is under pressure mainly due to some Chinese unable to payup soy cargoes, and also the U.S. weather has improved," a trader said.There were rumors Friday that a multinational grain-trading companyhad obtained a court order to seize one to two cargoes of soybeans boundfor China. The move was believed to be in response to financial problemsencountered by Chinese soybean crushers earlier this year.Forecasts calling for no threatening temperatures in the U.S. soybeanbelt all week also halted an earlier weather-inspired rally in the soycomplex futures.Traders said participants are now waiting for the U.S. Department ofAgriculture's monthly crop report due Friday.Last year, the USDA's September report triggered a bull run in globaledible oil prices.In the cash market, CPO for September shipment was offered at 1,585ringgit ($1=MYR3.80) a ton, up MYR10 from Friday, delivered basis in SouthMalaysia.RBD palm olein for September shipment was offered at $452.50/ton,unchanged from Friday.RBD palm oil for September shipment was offered at $442.50/ton, alsounchanged.In Indonesia, RBD palm olein in Jakarta was offered at 4,650 rupiah($1=IDR9,255/kg), unchanged from Friday.There were no offers for CPO in Medan so far Monday, traders said.