KL palm oil futures resumes fall after gains

KL palm oil futures resumes fall after gains

KUALA LUMPUR (Reuters): Malaysian palm oil futures resumed their fall on Monday after gains in the previous session, due to liquidation by players worried about a further build up in domestic stocks.

Prices fell to the lowest level in nearly seven years before recouping some losses by the close.

The benchmark third-month December futures contract ended down six ringgit at 912 ringgit (US$240) a ton after trading as low as 905, its weakest level since December 19, 1993, when the market hit an intra day low of 894 ringgit.

Volume was thin at 585 lots.

Export figures for the first 25 days of September failed to excite the bearish market.

"The figures are not very encouraging," said one trader.

Cargo surveyor Intertech Testing Services estimated Malaysia's palm oil exports for September 1-25 at 604,845 tons against the firm's estimates of 527,198 tons for the same period in August.

Another cargo surveyor Societe Generale de Surveillance Malaysia Sdn Bhd (SGS), whose estimates are more closely watched by players, put September 1-25 exports at 659,749 tons.

SGS did not issue export data for August 1-25 due to technical problems. It put exports for the whole of August at 726,388 tons.

Physical Oct (south) crude palm oil was offered at 885 ringgit a ton against bids of 875, and trade was reported at 880.

Oct (central) was offered at 890 ringgit against bids of 880, with trade done at 890 to 880.

Among refined products, Oct RBD palm oil was offered at $250 a ton FOB, Nov at $255 and Dec at $257.50.

There were offers for Oct RBD palm olein at $270, Nov at $275 and Dec at $277.50.

Oct RBD palm stearin was offered at $185 and Nov at $190. Oct palm fatty acid distillate was offered at $150 and Nov at $152.50.