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.