KL palm oil ends lower in Chicago

KL palm oil ends lower in Chicago

KUALA LUMPUR (Reuters): Long liquidation dominated the Malaysian palm oil at the close on Tuesday on overnight falls in soyoil futures at the Chicago Board of Trade (CBOT) and high expectations that November exports data would be bearish.

"It's so bearish. Floods haven't affected plantations and Indonesia is likely to be more aggressive in selling cheaper oil to the market," said one trader in Kuala Lumpur.

The benchmark third-month February futures contract was down 21 ringgit at 823 ringgit (US$216.57) a ton after trading as high as 835.

Volume was heavy at 2,322 lots.

Some traders have speculated that monsoon rains would hit plantation areas on Saturday and Sunday and cause floods. But the weather was good at the weekend and sunshine was reported in most parts of Peninsular Malaysia.

Some traders say neighboring Indonesia has captured market share internationally from Malaysia by selling palm oil more cheaply. The Indonesian products are normally between $5 and $10 cheaper than Malaysian equivalents, traders said.

December (south) saw offers at 800 ringgit and bids at 795, with trade reported at 795. December (central) was offered at 795 ringgit against bids of 790. Trade was done at 795 to 800.

Among refined products, December RBD palm oil was offered at $225 a ton FOB and January at $230.

There were offers for December RBD palm olein at $242.50 and January at $245.

December RBD palm stearin was offered at $200 and December palm fatty acid distillate was offered at $140.