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Mahamad Rodzi Abdul Ghani




Mahamad Rodzi Abdul Ghani


Dow Jones



MARKET TALK: MPOB Estimate Seen "Slightly Bearish"
(Dow Jones)--BMD trader says MPOB estimate showing a 1.8% rise inend-January stocks "slightly bearish" for prices as the market wasexpecting stocks to fall. "Besides, there is now talk that Februaryproduction may not drop as much as the 20% predicted by some, which meansthere will be further buildup in stocks this month," he says. All thesefactors point to revival of pressure on prices. Benchmark May contract nowat MYR1,315/ton, down MYR16/ton from Monday's close.Malaysia's palm oil exports in January fell 12% on month to 995,345 metrictons, the Malaysian Palm Oil Board said Tuesday.MPOB said January palm oil output also fell 12% on month, to 1.15 milliontons, while end-January stocks rose 1.8% on month to 1.52 million tons.Traders said the figures were mostly in line with market expectations.Last week, the Malaysian Palm Oil Association, a lobby group of bigplantation companies, had estimated a 13% drop in January production.The following are details of the January crop data issued by the MalaysianPalm Oil Board:

JanuaryDecember Change(All figures are inmetric tons)

Crude Palm Oil Output 1,151,956 1,313,679Dn 12%Palm Oil Exports 995,3451,130,656 Dn 12%Palm Kernel Oil Exports 84,41782,577 Up 2.2%Palm Oil Imports 38,64433,355 Dn 16%Closing Stocks 1,516,0011,489,788 Up 1.8%Crude Palm Oil 838,726890,781 Dn 5.8%Processed Palm Oil 677,275 599,007Up 13%