Indonesian crude palm oil prices climbed sharply on Monday, propped up by strong demand from local refiners and India, as well as extended gains in Malaysia. At the state marketing centre in Jakarta, crude palm oil rose 1.55 percent to 7,519 rupiah ($0.816) a kilogram, from 7,404 rupiah a kilogram on Friday.
PT SMART bought all the 1,500 tonnes of crude palm oil that the centre offered in the auction, reflecting firm demand from local refiners. No auctions took place in North Sumatra's Medan on Monday and Friday.
"Players usually wait to see how the market moves on the first day of the week. Today, crude palm oil surged because of strong demand from local refiners, India and on Malaysia," said a trader in Medan, the leading port for crude palm oil export.
Upcoming religious festivals are driving demand in India, one of Indonesia's key buyers. Malaysian crude palm oil futures gained 1.3 percent on Monday, tracking an increase in rival soyabean oil prices and supported by a weakening ringgit currency.
The benchmark October contract on the Bursar Malaysia Derivatives Exchange rose 33 ringgit, or 1.3 percent, to 2,616 ringgit ($754) per tonne. In Jakarta, cooking oil edged up to 7,875 rupiah a kilogram from 7,850 rupiah a kilogram on Friday. On the export market, crude palm oil for August shipments was offered at $800 a tonne free on board Begawan, up $5 from $795 a tonne on Friday.
Buyers bid at $790 a tonne without any deals reported. September shipment, crude palm oil free on board Begawan was offered at $790 a tonne, up from $785 a tonne on Friday. Buyers bid at $765 a tonne with no deals reported. October to December shipments, crude palm oil was offered at $765 a tonne while buyers bid at $755 a tonne. There were no deals reported.
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