The Indonesian crude palm oil market saw no deals on Monday, shrugging off a plunge in Malaysian palm oil futures, as investors waited to see whether prices would rebound. In Jakarta, the state marketing centre failed to sell 6,000 tonnes of crude palm oil.
Producers in North Sumatra's Medan did not hold an auction, awaiting fresh price leads. "Palm oil futures are down a lot today, so players are cautious. They're afraid market may go up again the next day," said a trader in Medan, the key port for palm oil exports.
Malaysian crude palm oil futures fell by more than 4 percent on Monday, dragged down by declining prices of rival soybean oil and crude oil with the benchmark October contract fell 119 ringgit or 4.6 percent to 2,463 ringgit ($710.8) a tonne before the close.
Another trader said lacklustre demand also put pressure on the market although the Muslim fasting month of Ramazan was just weeks away. "We haven't see any jump in demand for Ramazan. I think current prices are still too high for refiners. They want to wait until crude palm oil prices fall further," he said. Cooking oil in Jakarta were unchanged at 8,200 rupiah ($0.884) a kilogram from Friday.
Some refiners in Jakarta did not make offers due to lack of supplies as shipments of crude palm olein from Kalimantan had been delayed due to bad weather. "We didn't have any auction today because we didn't have olein stocks to offer. I heard some refiners also have thin olein stocks because of delayed shipments," a Jakarta-based trader said.
On the export market, crude palm oil for October to December shipments were offered at $742.5, free on board Belawan. Buyers bid at $737.5 a tonne without deals reported. There was no offer for August shipment.
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