Indonesian palm oil prices rose nearly 2 percent on Friday, tracking gains in the neighbouring Malaysian market, although trading was limited ahead of the weekend. Crude palm oil for July shipment in the export market was offered at $780 a tonne frees on board Begawan.
August shipment was quoted at $775 a tonne, up nearly 2 percent from $760 a tonne on Thursday. Buyers bid at $770 but no deals were reported. "Malaysian is gaining so traders here followed it," said a trader in Jakarta.
Malaysian crude palm oil futures rose to one-month highs as prices of rival soyabean oil went up due to lower US government estimates for soyabeans reserves. The benchmark September contract on the Bursar Malaysia Derivatives Exchange edged up 1 ringgit to 2,616 ringgit ($760) a tonne by midday break.
Cooking oil prices in Jakarta edged up to 7,600 rupiah a kilogram from 7,550 rupiah a kilogram on Thursday. The state marketing centre in Jakarta, which sells crude palm oil from the state plantation, failed to sell 3,500 tonnes of crude palm oil due to low bids.
PT MultiMate Nagata Saharan and PT Bucket Kaput Reeks were the highest bidders at 7,150 rupiah a kilogram, while the state's target price was at 7,199 rupiah a kilogram. There was no auction in Medan, the key port for palm oil exports in Sumatra Island. "Players are waiting for fresh leads for next week, so they retreated," said a trader in Medan.