Malaysia palm oil futures end lowest in four weeks

Malaysia palm oil futures end lowest in four weeks

KUALA LUMPUR (Reuters): Malaysian palm oil futures closed at their lowest in four weeks on Thursday on further liquidation following the release of weak export figures for the first 10 days of August.

Traders said concerns over high domestic stocks and weaker Chicago soyoil futures overnight also weighed on prices.

The benchmark third position October futures contract ended down 16 ringgit at 1,019 ringgit ($268.16) a ton, its lowest since July 12.

Volume increased to 949 lots against 564 on Wednesday.

"Prices were pulled down by the exports figures. Given this kind of export numbers, stocks will certainly build up as we're expecting higher production in the coming months," said one trader in Kuala Lumpur.

Cargo surveyor Societe Generale de Surveillance Malaysia Sdn Bhd (SGS) said on Thursday Malaysian palm oil exports for August 1-10 were at 158,054 tons.

SGS gave no comparative figures because it was the first time the surveyor had issued export data for the first 10 days of the month.

Earlier, cargo surveyor Intertech Testing Services (ITS) estimated Malaysia exported 125,389 tons of palm oil in the first 10 days of August compared with 201,911 tons for the same period in July.

Private crop forecaster Ivan Wong estimated Malaysia's palm oil stocks at the end of July at 1.075 million tons against 1.04 million tons at end-June.

Traders said prices could head for the 1,000 ringgit key support level given the weak market sentiment.

Physical prices also fell amid ample supply and poor demand for refined products, traders said.

Aug (south) crude palm oil was offered at 1,000 ringgit a ton against bids of 995. It traded from 1,005 to 1,000.

Among refined products, Aug RBD palm oil was offered at $277.50 a ton FOB, Sept at $282.50 and Oct/Nov/Dec at $292.50.

There were offers for Aug RBD palm olein at $297.50, with Sept at $302.50 and Oct/Nov/Dec at $312.50.

Aug/Sept RBD palm stearin was offered at $230 and Aug/Sept palm fatty acid distillate at $190.