Palm oil steady, eyes Indonesia port strike

KUALA LUMPUR: Malaysian crude palm oil futures were little changed on Tuesday on steady global vegetable oil prices but traders were on the lookout for a possible port strike in Indonesia that could paralyse shipments from the world's largest producer.

The benchmark June contract on Bursa Malaysia Derivatives Exchange settled down 7 ringgit to 3,375 ringgit ($1,059) but held on to gains of nearly 11 per cent so far this year.

Other traded months ranged between a decline of 15 ringgit to gains of 35 ringgit. Overall trade stood at 12,055 lots of 25 tonnes each.

Argentine crushers and exports were able to restock on Monday just days after a paralysing three-week farm strike came to an end, traders said.

Palm oil, used in products from margarines and lipsticks to bio-fuels, is roughly 25 per cent off an historic high of 4,486 ringgit last month, but has derived support in the past week from strike actions in South America.

India, which scrapped import duties on crude edible oil last week, may have to get crude palm oil from Malaysia rather than Indonesia, historically a main supplier to the south Asian nation, traders said.

In Malaysia's physical market, crude palm oil for April shipment in the southern region was quoted at 3,365/3,380ringgit a tonne. Trades were done between 3,360 and 3,390ringgit.



Source: The News