Indonesian crude palm oil

Malaysian refiners are snapping up more Indonesian crude palm oil, taking advantage of its widening discount to local production as export demand for the vegetable oil remains firm. Indonesian crude palm oil for February delivery was trading at RM3,690 per tonne, some RM60 lower than in Malaysia despite dealers pricing in a possible Indonesian government move to raise export taxes next month. Refiners said Indonesia's RM60 discount allowed them to pay the RM10 per tonne cost of shipping back the palm oil to Malaysia while still making some margins as demand started to inch up. (Reuters, Financial Daily)