Malaysia palm oil ends far below highs

Malaysia palm oil ends far below highs

KUALA LUMPUR (Reuters): Malaysian palm oil futures closed well off the day's highs on Thursday in a late pullback as players took the opportunity to exit the market at higher levels, traders said.

A technical rebound helped lift prices earlier.

"Many players took advantage of the rise to get out of the market. They know the outlook for the market is not encouraging," said one trader in Kuala Lumpur.

The benchmark third-month December futures contract KPOZ0] settled at 835 ringgit ($219.74) a ton, trimming the day's gains to just two ringgit, after trading as high as 851 ringgit.

"It looks like the upside is capped at 850 ringgit," the trader said.

Traders said worries about growing stocks and a slowdown in demand from traditional buyers such as India and China would keep a lid on prices.

Both China and India are currently harvesting their soybeans which means imports from both countries could drop further during the crop season. Soyoil is a direct competitor to olein.

Indonesia is also selling palm oil at a discount to Malaysia and this had encouraged buyers to shift to the world's second largest producer, said traders.

Physical Oct (south) crude palm oil was offered at 795 ringgit a ton against bids of 785, and traded at 780 to 790.

Among refined products, Oct RBD palm oil was offered at $235 a ton FOB, with Nov at $237.50 and December at $240.

There were offers for Oct RBD palm olein at $255, Nov at $257.50 and Dec at $262.50.

Oct RBD palm stearin was offered at $162.50 and Oct palm fatty acid distillate was offered at $135.