ISLAMABAD (June 25 2003) : Pakistan palm oil trade has been slow in thepast week and a downtrend in international prices could keep the marketunder pressure, traders said on Tuesday.
"The market lacks buying interest and imports are likely to slow downfurther this week," said Pervez Aminuddin, a dealer in the southern portcity of Karachi.
He added that weak international prices and overbought positions among bigimporters were responsible for thin buying interest, with most traderswaiting for the international market to take a clear direction.
Malaysian palm oil futures moved lower on Tuesday and at the close thebenchmark third-month September contract was down 12 ringgit at 1,409ringgit ($370.79) a tonne after trading as low as 1,405 ringgit, justabove key 1,400 ringgit support.
Dealers in Pakistan said traders had enough stock to meet demand until thesecond week of July and buying activity would only pick up when theinternational market was stable.
Karachi dealer Ziauddin Ahmad said increased supply of other edible oils,including US-donated soyaoil and soyabeans, had also helped slow palm oilimports.
"A lot of soyaoil and soyabeans are in the market," he said.-Reuters