Indonesian crude palm oil hit a record high on Friday, powered by extended gains in Malaysian crude palm oil futures and strong domestic demand. The state marketing centre in Jakarta, which sells palm oil from state plantations, sold 3,000 tonnes of crude palm oil at 9,683 rupiah ($1.06), up from 9,627 rupiah a kg on Thursday.
"Two factors helped lift our prices," said Aziz Kahar, head of palm oil marketing at the centre adding that there was strong demand from local refineries." Producers in North Sumatra's Medan did not hold crude palm oil auctions on Friday. Malaysian crude palm oil futures rose 2.7 percent to hit a new high on Friday with the benchmark April contract on the Bursa Malaysia Derivatives Exchange up 46 ringgit at 3,497 ringgit by the midday break.
Used in products from margarine and lipstick to biofuels, palm oil has been driven by rising crude oil and record soyoil prices and plans by Indonesia, the world's largest producer, to hike export taxes.
Gains in Malaysia also lifted the prices of refined, bleached and deodorised (RBD) palm olein, used as cooking oil, in Jakarta to 9,650 rupiah a kg from 9,450 rupiah a kg on Thursday.
"Malaysia was up and as usual, we tracked Malaysia although demand for cooking oil is slow because of high prices," said a cooking oil trader in Jakarta. On the export front, crude palm oil for March shipment was offered at $1,090 a tonne free on board Belawan, up $20 from Thursday. Buyers bid $1,080-1,082.5 a tonne but there was no report of any deals.