Malaysia palm oil gives up gains by close

Malaysia palm oil gives up gains by close

KUALA LUMPUR (Reuters): Malaysian palm oil futures ended lower on Tuesday after rising briefly on government promises to reveal all details of its plans to burn crude palm oil (CPO), trades said.

Profit-taking meant benchmark June futures ended two ringgit lower at 877 ringgit ($230.79) a ton after gaining as much as eight ringgit at one stage.

Primary Industries Minister Lim Keng Yaik told reporters he would show on April 12 how CPO can be mixed with medium fuel oil and burned at a power station operated by state utility Tenaga Nasional.

"This is the news the market has been waiting for and it's good they are doing it by next week," said a trader.

The market had lately been pessimistic about Lim's mission to burn at least 400,000 tons of CPO by end of this year to clear excess stocks.

Physical April (south) CPO was offered at 855 ringgit a tonne, up five ringgit from Monday. It was bid at 850 and traded at 845, 850 and 855.

April (central) saw offers at 860 ringgit and bids at 850. It traded at 855.

There was no interest for May contracts.