Malaysia palm oil ends off highs

Malaysia palm oil ends off highs

KUALA LUMPUR (Reuters): Malaysian palm oil futures closed with pared gains on Wednesday as players turned cautious after rises earlier in the day and on Tuesday.

Traders said market talk that exports were likely to slow down this month capped the upside. They noted resistance at 870 ringgit a ton.

The benchmark third-month January futures KPOF1] contract ended up seven ringgit at 859 ringgit (US$226.05) a ton after trading as high as 869.

Traders said the market was worried that a further weakening of the rupiah would lead to aggressive export sales from Indonesia, the world's second largest palm oil producer after Malaysia.

The physical sector traded in a narrow range with prices held up by light refiner covering, traders said.

November (south) crude palm oil was offered at 840 ringgit a ton against bids of 835, and traded between 830 and 840.

Among refined products, November RBD palm oil was offered at $235 a ton FOB and December at $240.

There were offers for November RBD palm olein at $255 and December at $262.50.

November RBD palm stearin was offered at $187.50 and November palm fatty acid distillate at $132.50.