Indonesian palm oil prices extended gains on Tuesday as Malaysian crude palm oil futures hit a three-week high and local demand remained strong. The state marketing centre in Jakarta sold crude palm oil at 9,822 rupiah ($1.07) a kg, up from 9,425 rupiah on Monday.
Producers in North Sumatra's Medan sold crude palm oil at around 9,805-9,890 rupiah a kg, up from 9,025 rupiah last week. "Malaysia has gained a lot. Also demand is increasing because buyers are anticipating tight supply due to the seasonal decline in palm oil production which can last until June," said a dealer in a plantation firm in Medan, where Belawan port is located.
Malaysian palm oil futures rose more than 2 percent to a three-week high on Tuesday, thanks to demand from Indian and Chinese importers, traders and analysts said. The benchmark June contract ended up 95 ringgit at 3,690 ringgit ($1,165) per tonne, a level not seen since March 26.
The price of refined, bleached, deodorised (RBD) palm olein - used as cooking oil - rose to 9,900 rupiah a kg, from 9,500 rupiah a kg on Monday. "Prices gain but the market is quiet. I think buyers are a bit scared that prices may fall sharply after gaining a lot," a dealer at a Jakarta-based refiner and plantation firm said.
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