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.