November 16, 2006	Thursday	Shawwal 23, 1427

JAKARTA, Nov 15: Indonesian palm oil prices moved higher on Wednesday responding to sharp gains in the neighbouring Malaysian market and strong local demand amid fears of tight supply due to unfavourable weather.

At the state marketing centre in Jakarta, which sells palm oil from state plantations, crude palm oil jumped to 4,653 rupiah ($0.507) a kg from 4,563 on Tuesday.

In North Sumatra's Medan, the main port for palm oil exports, crude palm oil was also traded higher at between 4,588 and 4,637 rupiah per kg compared with 4,585 on Tuesday.

Malaysia is gaining much and demand is high. The combination of the two has boosted prices, a trader in Medan said. Buyers were pouring into the market on expectations of lower output.

By the midday break, the benchmark January contract on the Bursa Malaysia Derivatives exchange was up 25 ringgit at 1,714 ringgit ($470) a ton.

Malaysian gains also supported the cooking oil market in Jakarta, with RBD palm olein traded higher at between 5,025 and 5,075 rupiah a kg compared with 4,950-5,000 on Tuesday.

In the export market, December shipment was offered at $477.5 a ton, and bids seen at $475. January, February and March shipments were offered at $485 per ton, while buyers bid at $477.5.—Reuters