Indonesian palm oil prices were mixed on Thursday because of a lack of supply-demand news, but tight local supplies and brisk demand held prices firm. At an auction at the state marketing centre, which sells palm oil from state plantations, crude palm oil climbed to 6,738 rupiah ($0.743) a kg from 6,726 rupiah on Wednesday.
"Supply is still thin as production remains seasonally low. That leaves refiners scrambling to get crude palm oil," said Aziz Khar, the centre's head of marketing. But at auctions in North Sumatra's Medan, the main port for palm oil exports, crude palm oil barely moved at 6,760 rupiah, compared with 6,765 on Wednesday.
Traders said players were reluctant to take positions because of the lack of price leads from the Malaysian crude palm oil market, which was closed for the day. "People have a vague idea how much prices should be because Malaysia is closed today. So prices don't move much," said a trader in Medan.
"Also, buyers are not buying crude palm oil for stocking because they're afraid prices may drop at any time," he said. Cooking oil in Jakarta softened to 7,070-7,100 rupiah a kg from 7,125-7,150 on Wednesday. The lack of price leads from Malaysia dampened trading interest on the export market. Sellers offered crude palm for May-June shipment at $690 a tonne and July-August at $665 frees on board Begawan, but buyers made no bids.
Hopes of improving supplies from Indonesia, the world's second largest tin producer, have pulled down tin prices at the London Metal Exchange from a new contract high of $15,100 on April 18. The metal used in plating and electronics closed at $13,500 on Wednesday against $13,650/$13,700 a tonne on Tuesday. "We have approved export permits for five more tin smelters.
So far, there are 10 smelters that are registered as tin exporters," Dinah Maulida, director general of foreign trade, told Reuters. The five smelters are CV DS Jays Abide, PT Bangka Pouter Karla, PT Bucket Timah, CV Donna Kembara Jays and PT Tinning Inter Nusa. Maulida said three more tin smelters were awaiting approval.
The government has issued stringent rules for tin exports, including producing refined tin with a minimum purity of 99.85 percent and providing proof of royalty payment.