December 4, 2002	Wednesday	Ramazan 28,1423

KUALA LUMPUR, Dec 3: Malaysian palm oil futures were flat at the close on Tuesday, weighed down by a sagging Chicago soy market as news about India’s decision to lift base import prices for soyoil failed to provide lasting support.

The benchmark third-month February contract was two ringgit lower at 1,620 ($426.32) a ton after trading as high as 1,633 ringgit. Volume was heavy at 5,262 lots.

The market couldn’t sustain the uptrend because of the weak soy futures, said one trader.

In Alliance/CBOT/Eurex December soyoil was unchanged at 22.37 cents per lb, while January was 0.04 cents lower at 22.35 cents.

India, the world’s largest edible oil importer, said on Tuesday it had raised the base import price of crude soybean oil which is used to calculate tariffs.

The government raised the price to $600 a ton from $542, the customs department said.

The country imposes a basic import levy of 85 per cent on refined oil, 65 per cent on crude palm oil and 45 per cent on soybean oil.

I think our market is a bit overdone. The Indians are quiet while Pakistan has already bought enough oil, said one trader.

The market should trade at 1,540 ringgit to attract buyers and I believe exports will be bad in the first half of this month, he added.

In the physical market, the crude palm oil contract for December saw bids close at 1,610 ringgit a ton against sale offers of 1,620 ringgit in the southern and central regions.

Deals were reported at 1,610 to 1,620 ringgit for both sides.

January CPO was on offer at 1,625 ringgit a ton against bids of 1,620 ringgit for south and central. Business was reported at 1,620 to 1,630 for both sides.—Reuters