CPO prices fall on rising RI exports

CPO prices fall on rising RI exports

KUALA LUMPUR (Reuters): Liquidation dominated the Malaysian palm oil market on Monday, with prices falling on July output, stocks and export figures and the prospect of rising exports from Indonesia.

Traders said official July data to be issued by the Malaysian Palm Oil Board (MPOB) on Tuesday was likely to be discounted by players.

The market was showing more interest in August 1-15 export figures to be issued at the same day, they said.

"People expect exports to be bad this month," a trader said, adding that the market was likely to break the 1,000 ringgit support level soon.

The benchmark third position October futures contract ended down 11 ringgit at 1,007 ringgit ($265) a ton after trading as high as 1,020 ringgit.

Volume was 1,172 lots against 668 lots on Friday. Wong said on Monday Malaysia's palm oil production was estimated to have risen 2.8 percent to 841,000 tonnes in July from June. Wong said in a statement he estimated stocks at the end of July at 1.075 million tonnes against 1.038 million tonnes at end-June.

Exports in July were 675,000 tonnes compared with 734,676 tonnes a month earlier.

Traders reported talk that Indonesia exported 625,000 tonnes of palm oil in June and that exports could exceed 500,000 tonnes in August.

Aug (south) crude palm oil was offered at 975 ringgit a ton against bids of 970. It traded at 970.

Sep (south) crude palm oil was offered at 995 ringgit a ton against bids of 990. It traded at 995.

Among refined products, Aug/Sep RBD palm oil was offered at $275 a ton FOB and Oct/Nov/Dec at $285. There were offers for Aug/Sep RBD palm olein at $295 and Oct/Nov/Dec at $305.

Aug/Sep RBD palm stearin was offered at $225 and Aug/Sep palm fatty acid distillate at $185.

Traders said prices eased on the physical market on uncertainties over future trends and a slowdown in demand from refiners.