August 8, 2002	Thursday	Jamadi-ul-Awwal 28,1423

KUALA LUMPUR, Aug 7: Malaysia’s palm oil futures were flat in late trade on Wednesday, lacking fresh impetus to sustain earlier gains as players cautiously waited for August 1-10 exports data due next week.

At the close, the benchmark third-month October contract was nine ringgit higher at 1,459 ringgit a ton after zapping between a low of 1,439 and a high of 1,464.

Volume was moderate at 2,882 lots.

Traders said the market’s fresh direction would come from the August 1-10 exports data due next week, which would provide details about imports by main consumers such as India, China and Pakistan.

Cargo surveyor SGS said Malaysia’s palm oil exports reached 900,051 tons in July, only up by 2,240 tons compared with June.

“The product side is a bit excited because India has started to make some inquiries. But in general, we are waiting for exports data,” said one dealer.

A leading Indian oilseeds industry body said on Wednesday the country’s winter oilseeds output will be slashed by the worst drought in more than a decade, but high world prices may limit vegetable oil imports.

The Solvent Extractors Association of India (SEAI) said the winter crop, which accounts for more than half of total annual oilseeds output, was likely to fall to about 9.67 million tons in the year to October 2003 from last winter’s 11.8 million.

“We have just compiled figures showing a one-million-ton shortfall in groundnut and an 800,000-ton shortfall in the soybean crop — that is definitely going to happen,” B.V. Mehta, SEAI’s executive director, told Reuters.

“If we get good rains from now onwards, we might prevent further damage,” he added.

The SEAI delegation was stopping over in Singapore on its way to Medan in Indonesia.

In physical trading of Malaysian crude palm oil on Wednesday, the CPO contract for both August and September saw closing bids at 1,460 ringgit a ton, against sale offers at 1,465. Deals were reported at 1,465 to 1,470.—Reuters