Malaysia palm oil rebounds at close

Malaysia palm oil rebounds at close

KUALA LUMPUR (Reuters): Malaysian palm oil futures closed mostly higher on Tuesday on technical covering and amid talk that a local refiner was buying at the market to shore up prices, traders said.

The benchmark November futures contract ended up four ringgit at 1,042 ringgit (US$272.21) a ton after trading as low as 1,020 ringgit. Volume was 1,777 lots.

"We heard that a big refiner was buying at the futures market. But some said this merely aims at instigating the market...so that people believe demand is coming back," said one trader in Kuala Lumpur.

Traders said the Malaysian market would look for direction to the Chicago Board of Trade (CBOT) which reopens on Tuesday after the Labor Day holiday.

September RBD palm olein stood at $305/ton FOB Malaysia compared with $375 in early August.

September crude palm oil for south region was offered at 1,050 ringgit a ton against bids at 1,045. There were trades at 1,040 to 1,045 for both sides.

Among refined products, September RBD palm oil was offered at $290.00 a ton and October/November/December at $295.

Offers for September RBD olein were at $305 and October/November/December at $310.

September RBD palm stearin was offered at $247.50 a ton and September palm fatty acid distillate was offered at $200.