KL palm oil higher after choppy trade

KL palm oil higher after choppy trade

KUALA LUMPUR (Reuters): Malaysian palm oil futures closed higher on Monday after a choppy session, with technical buying lifting prices in late trade, dealers said.

Official September palm oil output, exports and closing stock figures released by the Malaysian Palm Oil Board (MPOB) triggered fresh selling in the afternoon after encouraging export estimates for the first 15 days of October had boosted prices.

Cargo surveyor Societe Generale de Surveillance Malaysia Sdn Bhd (SGS) said Malaysian palm oil exports for October 1-15 were at 458,101 tons against 316,329 tons for the same period in September. Another cargo surveyor, Intertech Testing Services (ITS), estimated Malaysia's palm oil exports for the first 15 days of October at 449,474 tons compared with the firm's estimate of 317,610 tons for the same period in September.

MPOB said Malaysia's palm oil output rose 16.48 percent to 1.11 million tons in September from 952,195 tons in August, and against 1.04 million tons in September 1999.

It said end-September stocks were up 14.52 percent to 1.37 million tons against 1.19 million tons at end-August. Stocks were at 1.21 million tons at end-September last year.

Exports in September stood at 785,248 tons compared with 701,424 tons in August and 835,427 tons in September 1999, MPOB said.

January, the new third-month crude palm oil futures contract, ended up 22 ringgit at 845 ringgit ($222.37) a ton' after trading between 813 and 846 ringgit.

"Some key players were again seen pushing up the market. Many are still looking for levels to sell, so we're expecting the market to remain weak," said one trader.

Traders expected the market's rise to be limited by worries that stocks will further increase in coming months. Huge supplies, rising output and intense export competition from Indonesia were among reasons for recent losses.

Physical Oct (south) crude palm oil was offered at 770 ringgit a ton against bids of 760, and trade was done at 750 to 760 ringgit.

Nov (south) saw offers at 780 and bids at 770, with trade done at 770 to 775.

Among refined products, Oct RBD palm oil was offered at $222.50 a ton FOB, with Nov at $225 and Dec at $227.50.

There were offers for Oct RBD palm olein at $247.50, Nov at $250 and Dec at $252.50.

Oct RBD palm stearin was offered at $152.50 and Oct palm fatty acid distillate was offered at $130.