KL palm oil ends down

KL palm oil ends down

KUALA LUMPUR (Reuters): Malaysian palm oil futures surrendered earlier gains to close lower on Friday following the government's forecast of a 7.5 percent increase in 2001 output.

The Finance Ministry said on Friday that Malaysia's palm oil production was expected to rise to 11.45 million tons next year from an estimated 10.65 million in 2000, mainly due to an expected 3.7 percent increase in harvesting area.

Average crude palm oil price was forecast at 1,050 ringgit a ton in 2001, down from 1,100 this year and 1,459 in 1999, the ministry said in its economic report for 2000/2001.

The benchmark third-month January futures contract ended down one ringgit at 869 ringgit ($228.68) a ton after trading as high as 880 ringgit.

Physical November (south) crude palm oil was offered at 845 ringgit a ton against bids of 835, and traded at 840.

Among refined products, November RBD palm oil was offered at $240 a ton FOB and December at $245.

There were offers for November RBD palm olein at $260 and December at $265.

November RBD palm stearin was offered at $180 and November palm fatty acid distillate at $137.50.