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Article: Palm Oil Pricing Stays Soft Because of World Oilseed Glut.
- Article from:
- Chemical Market Reporter
- Article date:
- March 20, 2000
- Author:
CopyrightCOPYRIGHT 2000 Schnell Publishing Company, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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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 ...