Malaysia palm oil ends up

Malaysia palm oil ends up

KUALA LUMPUR (Reuters): Malaysian palm oil futures closed higher on Monday on support from private forecaster Ivan Wong's December report, traders said.

The benchmark third-month March futures contract rose 15 ringgit to 774 (US$203.68) a tonne.

Wong estimated Malaysia's palm oil output to have fallen by 20 percent to 929,000 tons in December from a month earlier.

He put end-December stocks at 1.40 million tons, down from a record 1.52 million tons at end-November, and exports in December at 895,000 tonnes against 890,068 in November.

"There was a lot of short covering after Ivan Wong's report. Prices were also on the low side and this aided the rise," said one trader in Kuala Lumpur.

But he said gains might not be sustainable given the high domestic stock level and pressure on Chicago Board of Trade (CBOT) prices from good crop weather in South America.

"Although stocks have fallen, we are looking at 1.4 million tonnes at the start of the year and this is very high. CBOT soybean prices are also not looking good at the moment," the trader said.

Physical January (south) crude palm oil was offered at 720 ringgit a ton against bids of 715. Trade was done at 695 to 715.

February (south) was offered at 760 against bids of 750, and traded at 740 to 750.

Among refined products, January RBD palm oil was offered at $207.50 a ton FOB and February at $215.

There were offers for January RBD olein at $212.50 and February at $220.