JAKARTA, May 9: Indonesian palm oil prices were mixed on Wednesday, amid tight crude palm oil supplies and with the market digesting a further rise in the rupiah and an increase in base export prices.
The state marketing centre in Jakarta sold 500 tons of crude palm oil at 6,687 rupiah ($0.759) per kg, up 0.16 per cent from 6,676 rupiah a kg on Tuesday.
At an auction in North Sumatra’s Medan, the main port for palm oil, super crude palm oil traded at 6,710 rupiah a kg, down from 6,910 on May 1 with 300 tons changing hands.
The rupiah is getting stronger, this is making our price weaker than yesterday, a trader in Medan said.
The government has asked producers to release 100,000 tons of cooking oil to lower local cooking oil prices to around 6,500-6,800 rupiah a kilogram.
In the export market, crude palm oil prices rose after the government announced on Wednesday morning a raise in base export prices for all palm oil products to bring them in line with international levels.
Crude palm oil is subject to a 1.5 per cent export tax, while other palm oil derivative products are subject to a 0.3 per cent export tax. Palm kernel is subject to a 3 per cent export tax.
Crude palm oil for May shipment was offered at $720 a ton, up 1.4 per cent from $710 a ton on Tuesday, but buyers did not bid.
Sellers offered June shipments at $710 a ton, up from $700 on Tuesday without any bids from buyers.—Reuters
