Indonesia palm oil mixed on rupiah, tight supply

    JAKARTA, May 9 (Reuters) - Indonesian palm oil prices were mixed on Wednesday, amid tight crude palm oil supplies and with the market digesting a further rise in the rupiah and an increase in base export prices.

   The state marketing centre in Jakarta sold 500 tonnes of crude palm oil at 6,687 rupiah ($0.759) per kg, up 0.16 percent from 6,676 rupiah a kg on Tuesday.

   At an auction in North Sumatra's Medan, the main port for palm oil, super crude palm oil traded at 6,710 rupiah a kg, down from 6,910 on May 1 with 300 tonnes changing hands.

   "The rupiah is getting stronger, this is making our price weaker than yesterday," a trader in Medan said. The rupiah <IDR=> rose as far as 8,805 per dollar, its strongest level in a year, boosted by comments by top central bank officials.

   In Jakarta cooking oil held at around 6,850 rupiah a kilogram after the government moved to try and lower prices in early May.

   "The price is actually reaching 7,100 because the crude palm oil price is also rising but there is a market intervention making us sell at 6,850 rupiah. We only sold 150 tonnes of cooking oil to retailers," a trader in Jakarta said.

   The government has asked producers to release 100,000 tonnes of cooking oil to lower local cooking oil prices to around 6,500-6,800 rupiah a kilogram. Cooking oil is a staple and an increase in prices can increase inflationary pressure.

   In the export market, crude palm oil prices rose after the government announced on Wednesday morning a raise in base export prices for all palm oil products to bring them in line with international levels.

  Base prices are used to calculate the amount of tax paid by exporters.

   Crude palm oil is subject to a 1.5 percent export tax, while other palm oil derivative products are subject to a 0.3 percent export tax. Palm kernel is subject to a 3 percent export tax.

   Crude palm oil for May shipment was offered at $720 a tonne, up 1.4 percent from $710 a tonne on Tuesday, but buyers did not bid.

   Sellers offered June shipments at $710 a tonne, up from $700 on Tuesday without any bids from buyers.  The base export price for crude palm oil has been raised to $558 a tonne from $525 a tonne.  ($1=8813 Rupiah)

  Source : Reuters