Malaysia palm oil exrends fall

Malaysia palm oil exrends fall

KUALA LUMPUR (Reuters): Malaysian palm oil futures rebounded by the close on Monday but stayed in negative territory with some players expecting technical correction to emerge, traders said.

The benchmark November futures contract ended down 31 ringgit at 1,038 ringgit (US$273.16) a ton after trading as low as 1,026 ringgit. Volume was at 1,463 lots.

"The market had broken major support of 1,030 ringgit, but rebounded after players bought back their contracts. But can it sustain the rebound? That's a big question," said one trader in Kuala Lumpur.

India, the world's largest edible oil importer, buys palm oil from Malaysia and Indonesia.

On Monday, cargo surveyor Societe Generale de Surveillance Malaysia Sdn Bhd (SGS) said India's palm oil imports from Malaysia fell to 140,336 tons in August compared with 200,906 tons in July.

In Indonesia, traders said the country's monthly palm oil exports may slow to 350,000 tons from around 500,000 tons over the coming months because of slow demand, particularly from India.

On the physical side, September crude palm oil for south region was offered at 1,045 ringgit a ton against bids at 1,035. There were trades at 1,035 to 1,040.

September CPO for the central region saw offers at 1,045 ringgit against bids of 1,040. Deals were done at 1,040 to 1,042.50.

Among refined products, September RBD palm oil was offered at $287.50 a ton and October/November/December at $292.50.