Indonesia's palm oil market saw few auctions on Wednesday, with buyers anticipating prices could fall after recent pressure on the Malaysian market, while sellers appeared to be holding out for higher prices. The state marketing centre in Jakarta did not hold a crude palm oil auction for the local market on Wednesday.
The centre only held tenders for the export market. Dealers in North Sumatra's Medan offered crude palm oil at 7,835-7,850 rupiah ($0.843) a kg, down from 7,950-7,960 rupiah on Tuesday, but failed to sell 1,600 tonnes of the oil they offered in the auctions.
"The market for crude palm oil was quiet today since Malaysia has been retreating from a record high last week, tracking crude oil prices," said a dealer in Medan. The dealer said buyers preferred to wait until prices fell further.
Malaysian palm oil futures, which increasingly tracks crude oil prices because of its use as a feedstock for biofuel, have fallen 5.6 percent from a record high of 3,068 ringgit set last week.
However, crude palm oil futures held firm on Wednesday, supported by steady crude markets as they awaited a decision on production from the Opec oil producers cartel. The benchmark February contract on the Bursa Malaysia Derivatives Exchange rose 7 ringgit at 2,896 ringgit ($867) a tonne on midday break. The contract closed up 21 ringgit at 2,910 ringgit a tonne. Lacklustre trade in crude palm oil spilled over into the cooking oil market.
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