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.