30/03/05China Palm Oil Demand Slow; Buyers Cautious(Dow Jones)--Demand for Malaysian palm oil imports from China stillweak as buyers waiting for clearer market direction, say traders inMalaysia. Buyers in China preferring to cover requirements by taking upcargoes available domestically rather than placing fresh orders. "If theybuy directly from here, then it will take time for the oil to reach them.They don't want to be too exposed at this time because price direction isso uncertain," says trader in Malaysia.
Palm Oil Price Discount At Average Level(Dow Jones)--Discount for RBD palm olein to soyoil now around$85-$90/ton; traders say differential in line with average levels, whichsuggests little room for immediate upside or downside for palm oil prices.Any change in palm oil prices in the coming days, weeks would depend ondirection of soyoil.
Malaysia Still Studying Palm Oil-Diesel Plan(Dow Jones)--Malaysian Plantations Industries and Commodities Ministrystill conducting studies on planned biodiesel project, official Bernamanews agency reports, citing Deputy Minister Anifah Aman. Anifah quoted assaying ministry looking at what is ideal price of CPO for biodiesel andwhether subsidies required. No details on when studies likely to becompleted. Start of biodiesel project would help reduce country's palm oilstockpile, which positive for prices, traders say.
No Big Impact From Argentina Soy Rust Spread(Dow Jones)--Argentina plant health agency Senasa reports 17 new cases ofAsian rust fungus detected over past week; discovery brings number ofconfirmed and unconfirmed cases to 167 in seven provinces. But newsunlikely to have much impact on oilseeds, edible oil prices for now. Sofar no sign of disease causing any measurable damage to crops, as largelyappearing outside primary producing region.
Indonesia March 1-20 Palm Oil Exports UpIndonesia's palm, lauric oil exports in March 1-20 period at 495,850 tons,up from 361,944 tons in Feb. 1-20, trader says, citing data from surveyorSucofindo. Adds India biggest buyer at 145,976 tons, or nearly 30% oftotal exports during period. Higher March exports not surprising as palmoil sales of neighboring Malaysia also good, thanks to improved consumerdemand.
March Palm Oil Exports Seen Around 1.15M MTMarch Malaysian palm oil export estimates due tomorrow from cargosurveyors expected to be about 1.15 million tons, traders say. InFebruary, exports were about 920,000-926,000 tons. Sharply higher exportsmean demand in March likely to outpace production (which is expected uparound 5%-6%), so end-March stocks likely lower from month-ago levels,which supportive for palm oil prices, traders say.