KL palm oil extends gains, eyes data

KL palm oil extends gains, eyes data

KUALA LUMPUR (Reuters): Malaysian palm oil futures extended gains at the close on Friday on short covering, but most players remained cautious about future trends, traders said.

The benchmark third-month November contract ended up 12 ringgit at 1,186 ringgit (US$312.11) a ton after trading as low as 1,149. Volume was heavy at 3,199 lots.

Traders said the market was waiting for private forecaster Ivan Wong to release his fresh estimates for August palm oil output, end-month stocks and exports next week.

Traders said the market's recent rally, which saw prices reach their highest level in 22 months at 1,315 ringgit on August 8 (third-month basis), was driven by concern that supplies may be hit in coming months due to adverse weather.

On the physical side, August crude palm oil for the southern region was offered at 1,200 ringgit a ton against bids at 1,195. Trades were done at 1,190 to 1,195.

August CPO for the central region saw offers at 1,200 ringgit against bids of 1,195. Deals were reported at 1,190 to 1,200.

Among refined products, August RBD palm oil was offered at $335.00 a ton and October/November/December at $337.50. Offers for August/September RBD olein were made at $352.50 and October/November/December at $355.00.

August/September RBD palm stearin was offered at $287.50 and August/September palm fatty acid distillate was offered at $220.00.