Palm Oil Pricing Stays Soft Because of World Oilseed Glut.

Chemical Market Reporter, March, 2000 by PAPANIKOLAW, JIM

PALM OIL PRICES remain weak because of the global oilseed glut as Malaysia and Indonesia, the two main producers, continue their strong output. Prices have slid by about 2 cents per pound since the beginning of the year and show no sign of recovering. High soy, rapeseed and sunflower stocks are also softening the market. Despite modest seasonal production, lower-than-expected buying by India and China have dashed any hopes of a rally.

"Palm oil production declined by about 7 percent in February over January, but the big news has been the lack of exports," a trader says. "India and China are buying, but not nearly as much as hoped for. Domestic inventories are pretty heavy, and competition from other oilseeds has put a crimp in their buying activities."...

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