Indonesian crude palm oil prices rose on Monday, lifted by gains in the Malaysian market and a slowdown in domestic crude palm oil supplies, dealers said. In Jakarta, the state marketing centre sold crude palm oil at 9,812 rupiah ($1.06) a kg, up from 9,727 rupiah a kg on Friday.
"Local prices tracked gains in Malaysia today. But crude palm oil supplies in the domestic market were also a bit tight because production is having a seasonal decline," said an auction official at the centre which sells palm oil from state plantations. In North Sumatra's Medan, producers did not hold palm oil auctions despite gains in Malaysian crude palm oil futures, watching if the gain would persist tomorrow.
"It's Monday. Everybody is still warming up. Beside, Malaysia did not gain as much to attract players," said a crude palm oil trader in Medan where Belawan port - the key port for palm oil exports - is located. Malaysian crude palm oil futures rebounded on Monday from last week's three-week low on fears of tight vegetable oil supplies following renewed protests by Argentine farmers and prospects of better Asian demand.