Indonesian palm oil prices fell on Wednesday, pressured by losses in neighbouring Malaysia and soft demand as a volatile market sapped buying interest. At a local auction in Medan, crude palm oil was sold at 6,836 rupiah ($0.759) a kilogram, down from 6,850 rupiah a kilogram in an auction late on Tuesday.
The state marketing centre in Jakarta, which sells palm oil from state plantations, failed to sell 1,500 tonnes of crude palm oil. "The Malaysian market was down today and it pulled down local prices. But there were very few buyers because they want to see where prices will move," said a trader in Medan.
Malaysian crude palm futures slipped more than 1 percent on Wednesday as prices of rival soybean oil fell and traders took profit a day after the market gained. The benchmark September contract fell 27 ringgit or 1.1 percent to 2,488 ringgit ($721) a tonne by lunch break.
In Jakarta, cooking oil was quoted at 7,200 rupiah a kilogram, down from 7,275 rupiah on Tuesday as volatile crude palm oil futures dampened buying interest. "The market is very quiet. Who wants to buy when the market is up one day and falls the next day like a yo-yo?" a trader in Jakarta said.
At the export market, crude palm oil for July shipment was offered at $747.5 a tonne free on board Belawan. Buyers bid at $735 a tonne but no deals were reported. August shipments were offered at $742.5 a tonne. Buyers bid at $730 a tonne without any deals reported.