KARACHI (March 05 2004): Palm oil prices were firm during the past week on good domestic demand and dealers said on Wednesday the market was expected to remain stable in weeks ahead as importers were making spot deals.

"Most of the buyers are interested in spot deals because of current high world prices," said Zia Ahmed, a palm oil dealer in Karachi.

He said most of the traders had covered their stock positions for March demand and over 80,000 tonnes of edible oil was currently available in the market.

Zia said expectations of further increase in palm oil price in Malaysia would keep importers active in near-term.

"The rising trend in the international rates will keep importers busy," another trader said.

Dealers said the market was likely to remain bullish in coming weeks because traders were also building their stocks position.

They said the supply of locally produced cottonseed oil had exhausted, causing a surge in domestic prices. Pakistan produced 400,000 tonnes of cottonseed from its current cotton crop.

Millers in Punjab blend cottonseed with other vegetable oils for local consumption.

Dealers quoted palm olein at Rs1,950 per maund (37.32 kg) on Wednesday against Rs1,940 a week ago. Pakistan imports about 1.3 million tonnes of edible oil products annually, led by palm oil, mostly from Malaysia, to help meet domestic demand of 1.9 million tonnes.

The News International, Pakistan