Malaysia palm oil tracks soyoil to end lower

Malaysia palm oil tracks soyoil to end lower

KUALA LUMPUR (Reuters): Malaysian palm oil futures closed lower on Friday as the market tracked overnight losses in Chicago soyoil futures.

The benchmark third-month November futures contract ended down four ringgit at 992 ringgit (US$261.05) a ton after touching 989, its lowest level in three weeks.

"The market is just drifting in the absence of positive leads. We expect prices to stay below 1,000 ringgit for the time being," a trader said.

Traders said the market was awaiting fresh fundamentals including exports data for the first 10 days of September due next week.

Players are also waiting for action from Malaysia on its plan to issue licenses to several firms by mid-September to export 500,000 tons of crude palm oil without tax over the next six months.

Traders said concerns over a build up in domestic stocks also capped prices.

Private crop forecaster Ivan Wong said on Thursday there was a high probability stocks in the next three months would exceed the previous record of 1.25 million tons registered at end-November last year.

Wong estimated Malaysian palm oil stocks at the end of August at 1.205 million tons against 1.07 million tons at end-July.

Physical prices drifted in a tight range amid slow demand for refined products.

Sept (south) crude palm oil was offered at 965 ringgit a ton against bids of 960. Trade was reported at 960.

Among refined products, Sept RBD palm oil was offered at $270 a tonne FOB, Oct at $275 and Nov/Dec at $280.

There were offers for Sept RBD palm olein at $290, Oct at $295 and Nov/Dec at $300.

Sept/Oct RBD palm stearin was offered at $210 and Sept/Oct palm fatty acid distillate at $177.50.