ISLAMABAD, July 29: Weak international prices and declining local demand kept Pakistan’s palm oil trade dull during the past week and dealers saw little scope for an early recovery, traders said on Tuesday.

“Buyers are cautious on weak international prices and presently they are not booking big cargoes,” said Pervez Aminuddin, a palm oil dealer in Karachi.

“Most traders have covered their stock positions for August demand and it will take some time before we see fresh buying.”

Aminuddin said importers were also evaluating local demand and current stocks in the market before placing fresh orders.

“Over 75,000 tons (palm oil and olien) are currently available in the market, which are enough to meet August demand,” he added.

Another Karachi-based dealer said the Pakistan market was likely to remain dull in coming weeks on reports of weak palm oil futures in the Malaysian market and rising production there.

“Malaysian output estimates have already depressed world prices and it will sideline big players,” he added.

Indonesia’s production could reach 9.5-9.8 million tons in 2003, up from 8.5 million last year.

Local dealers in Pakistan on Tuesday quoted palm oil on the local market at Rs1,715 per maund (37.32 kg), up Rs5 from the previous week.—Reuters