KL palm oil prices mostly down

KL palm oil prices mostly down

KUALA LUMPUR (Reuters): Malaysian palm oil prices ended the week lower, continuing their downward trend on weak sentiment despite some earlier firmness.

Traders said underlying poor fundamentals continued to dampen market sentiment.

"There were some recoveries earlier but prices fell back towards the close as local fundamentals are not encouraging," said a trader.

He said trade was cautious as players preferred not to commit themselves ahead of the weekend. "The October crop data released by Ivan yesterday was bearish and judging from there, we are certain that the downward trend is intact," the trader said.

Private crop forecaster Ivan Wong said on Thursday that Malaysia's palm oil production was estimated to be 1.01 million tons in October against September's 1.04 million tons.

But he projected end-October stocks at 1.34 million tons compared with 1.21 million tons at end-September.

The third month January futures contract ended six ringgit down at 1,185 ringgit (US$311.84) a ton. Traders pegged immediate support level at 1,180 ringgit.

Traders said the market was also watching movements of the Indonesian rupiah currency following the country's presidential elections.

Lack of products demand also affected activity in the physical sector, traders said.

Oct (south) crude palm oil was offered at 1,210 ringgit against bids of 1,205.

Among refined products, Nov and Dec RBD palm oil were offered at $337.50 a ton FOB, and Jan/Feb/Mar at $342.50.

Nov and Dec RBD palm olein saw offers at $365, and Jan/Feb/Mar at $370.

Nov RBD palm stearin was offered at $275 and Dec at $280, and Nov palm fatty acid distillate at $215.