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NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

12/07/2001

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

NULL

CATEGORY

HEADLINE

Palm industry looks to demand from India, China
Palm industry looks to demand from India, China11/7/01 - Malaysia’s palm oil futures were at their latest level in sevenmonths at the close on Thursday on talk that India will soon enter themarket to stock up ahead of a festive season.Demand in India, the world’s largest edible oil importer, is high duringthe festival season which starts in August and peak of Oct and Nov duringDiwali, the Hindu festival of lights.India was Malaysia’s main palm oil buyer in 2000, taking 2.03 milliontonnes.The benchmark third-month Sept contract ended up RM 18 at RM 902 (US$237.37) a tonne, the highest level since Dec 4, 2000. The contract hadbroken a new high of RM 911. Volume was heavy at 2,948 lots.Talk about fresh purchases by India has been in the market in the past fewdays and players were also optimistic that China would soon issue importquotas for the second half of this year.Rumours hit the Malaysian market in the afternoon that China had releasedthe quota totalling 800,000 tonnes, but Chinese trader said on Thursdaythat Beijing is expected to make a decision next week.China issued 600,000 tonnes of import quotas in Jan for the first half ofthis year and another 100,000 tonne in May.In the physical sector, sentiment was bullish with prices rising to ashigh as RM 910, outstripping futures, on talk that local exporters werestocking up in anticipation of fresh purchases by India.Physical July crude palm oil (CPO) for the southern region was quoted atRM 905 a tonne against bids of RM 900. Trade was reported at RM 900.July CPO for central region saw bids at RM 900 against bids of RM 890.Deals were done between RM 895 to RM 900.August CPO for the southern region was offered at RM 910 a tonne againstbids if RM 905. Deals were reported between RM 905 to RM 910. August CPOfor the central region saw offers at RM 910 against bids of RM 900. Dealswere done between RM 905 and RM 910.Among refined products, July RBD palm oil was offered at US$ 257.50 atonne and August at US$ 260. There were offers for July RBD olein at US$275 and August at us5 277.50. July RBD palm stearin was offered at US$192.50 and July palm fatty acid distillate was offered at US$ 157.50. –Reuters.