Indonesia Palmolein Market Creepy

I will be extra cautious when dealing with private Pakistani buyers because problems over payments could arise if there is unrest there, one senior trader said. Elections were called for February 3 next year. It was the second time Bhutto had been sacked. Pakistan is a significant importer of palm oil from both Indonesia and Malaysia. If for instance there are riots, buyers could declare a force majeure and the situation could become sticky as far as payments are concerned, the trader added.

But some traders said they were not unduly worried, at the moment, over developments in Pakistan. An Indonesian foreign ministry official, asked to comment on the events in Pakistan, said: There is no statement regarding that matter. He described relations between Indonesia and Pakistan as normal.

 

Indonesian palmolein prices were slightly lower in early trading yesterday as buying interest remained scarce. Traders said olein was around 1,365-70 rupiah/kg in Jakarta, down from 1,370-75 rupiah at Mondays close.

Quotes were also heard at 1,360 rupiah. The traders said a crude palm oil tender expected later yesterday would give the market some direction.