Indonesian palm oil markets were lacklustre on Monday with players hugging the sidelines waiting for clearer price direction, traders said. A weakening rupiah against the US dollar supported prices, they added.
"Players are reluctant to take positions today. They want to see palm oil prices at Rotterdam first. Tomorrow, trading will be more active," a trader in Medan, the capital of North Sumatra province and Indonesia's key port for palm oil exports, said.
Rotterdam is Europe's main market for vegetable oils. A weakening rupiah against the dollar, however, helped push palm oil prices up. The local currency was quoted at 9,400 rupiah per dollar, from 9,395. CPO prices at the state marketing centre's auction were quoted at 3,931 rupiah ($0.418) a kg, up from 3,922 rupiah a kg on Friday.
There was no local auction in Medan. RBD palm olein in Jakarta was quoted at around 4,275 rupiah a kg, higher than 4,265 rupiah a kg on Friday. Gains in Malaysia crude palm oil futures also helped support prices, traders said.
But higher prices deterred buyers from taking positions as they were waiting for prices to fall, said a trader in Jakarta, adding 50 tonnes of RBD palm olein was traded. Exports remained uninspiring without immediate demand from major buyers such as China, India and Europe.
Sellers offered July shipment unchanged at $392.5 a tonne, free on board in Begawan port in North Sumatra. Bids stood at $387.5 a tonne with no deals reported. Offers for August shipment were also flat at $397.5 a tonne, FOB Begawan, and bids stood at $390 a tonne, with no trades reported.
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