KL palm oil ends at 2-month low on export data
KL palm oil ends at 2-month low on export data
KUALA LUMPUR (Reuters): Malaysian palm oil futures extended
last week's losses, closing at the lowest levels in two months as
players liquidated positions following bearish exports data,
traders said.
Cargo surveyor Societe Generale de Surveillance Malaysia Sdn
Bhd (SGS) said Malaysian palm oil exports in the first 10 days of
December were at 259,124 tons compared with 281,819 in the same
period in November.
Earlier, another cargo surveyor Intertech Testing Services
(ITS) estimated Malaysia's palm oil exports for December 1-10
fell to 239,568 tons against the firm's estimate of 310,445
tons for November 1-10.
Traders said lingering fears over high stocks at the end of
the year also dragged prices below the 800 ringgit a ton support
level for the first time since October 13.
The benchmark third-month February futures contract ended down
25 ringgit at 795 ringgit ($209.21) a ton. Traders pegged next
support at 780 ringgit.
"We had expected the export figures to be bearish as demand
has been slow. The market is likely to remain weak as stocks are
also high," said one trader in Kuala Lumpur.
Traders said the export data confirmed last week's estimates
by private forecaster Ivan Wong that stocks at the end of
December would be high.
Wong estimated end-November Malaysian palm oil stocks at a
record high of 1.56 million tons, up from 1.41 million at end-
October. He projected end-December stocks at 1.48-1.49 million
tons.
Physical December (south) crude palm oil was offered at 735
ringgit a ton against bids at 730, and trade was reported at 740
to 730.
December (central) crude palm oil was offered at 745 ringgit
against bids of 735, and trade was done at 750 to 740.
Among refined products, December RBD palm oil was offered at
$210 a ton FOB and January at $212.50.
There were offers for December RBD palm olein at $217.50 and
January at $222.50.
December RBD palm stearin was offered at $205 and December
palm fatty acid distillate at $165.