May 16, 2008 / 11:40 AM / 12 years ago

Indonesia palm oil prices ease on Malaysia

JAKARTA, May 16 (Reuters) - Indonesian crude palm oil prices fell on Friday, pressed down by losses in the Malaysian market, prompting players to the market’s sidelines.

At the close of Indonesia’s trading day, Malaysian crude palm oil futures were lower, extending recent losses as slower-than-expected exports and weakness in global vegoils continued to unsettle the market.

In Jakarta, the state marketing centre sold crude palm oil at 9,929 rupiah ($1.07) a kg, down from 10,087 rupiah a kg on Wednesday. The centre did not hold an auction for the local market on Thursday.

Crude palm oil producers in North Sumatra’s Medan, where Belawan port — the key port for palm oil exports — is located, did not hold a palm oil auction on Friday.

“This morning, Malaysia was down so players preferred to wait and didn’t hold auctions,” said a crude palm oil dealer in Medan.

The dealer said the market was also waiting for industry analyst Dorab Mistry’s comments at a world palm oil summit in Jakarta next week.

He expected players to be more active on Wednesday as Malaysia celebrate a public holiday on Monday and Indonesia does the same on Tuesday.

Jakarta hosts the World Palm Oil Summit and Exhibition next week, which will feature industry officials, including Mistry, whose comments are closely monitored by the palm oil market.

The losses in Malaysian crude palm oil also pushed down the price of refined, bleached, deodorised (RBD) palm olein, used as cooking oil.

In Jakarta, cooking oil was offered at 10,200 rupiah a kg, down slightly from 10,300 rupiah a kg on Thursday.

No price quotation at the export front was available as easing Malaysian palm oil futures muted trading interest.

$1 = 9,287 rupiah Reporting by Mita Valina Liem, editing by Sugita Katyal and Neil Fullick

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