KL palm oil extends losses

KL palm oil extends losses

KUALA LUMPUR (Reuters): Malaysian palm oil futures extended losses by the close on Tuesday on the back of weak export data, with prices dipping below the 800 ringgit a ton support level.

Traders said players sold on fears that exports would slip sharply in April.

Shipment data from cargo surveyors for both crude and refined palm oil for the first half of this month have shown a sharp drop against the same period of March, and the market fears the fall could get worse by end-April, traders said.

The benchmark third-month July [KPON1] contract ended down 23 ringgit at 793 ringgit ($208.68) a ton after trading as low as 789.

Other contracts fell between 18 and 25 ringgit.

Volume was heavy at 3,430 lots.

Traders said a lack of fresh factors, after the release of most near-term crop data on Monday, also weighed on prices.

Physical palm oil prices were also down in light activity.

April crude palm oil for the southern region was offered at 795 ringgit a ton against bids at 790, and traded at 800 to 795.