Heavy selling persists in Malaysia palm oil

Heavy selling persists in Malaysia palm oil

KUALA LUMPUR (Reuters): Heavy liquidation persisted in Malaysian palm oil futures at the close on Wednesday, reflecting losses in the Chicago market and talk of Indian plans to further increase import duties on edible oils.

The benchmark third-month March futures contract ended down 34 ringgit at 754 ringgit (US$198.42) a ton.

Volume was 2,199 lots, up from 1,370 lots on Tuesday.

"The Indians tell me there are rumors there the government is considering increasing the duties (by) 200 percent," said one trader in Kuala Lumpur.

The market broke support at 780 ringgit early in the afternoon, before sliding to 775 and 765, which prompted heavy liquidation.

"Prices are definitely hovering at 15-year low," the trader added.

Physical January (south) crude palm oil was offered at 700 ringgit a ton, against bids at 695 and trade at 700 to 710.

January (central) crude palm oil was offered at 710 ringgit, against bids at 700 and trade at 700 to 710.

Physical February (south and central) crude palm oil was offered at 735 against bids at 730. Trade was reported at 730 for both regions.

Among refined products, January RBD palm oil was offered at $200 a ton FOB and February at $207.50.

There were offers for January RBD olein at $207.50 and February at $215.

January RBD palm stearin was offered at $180 and January palm fatty acid distillate at $162.50.