Malaysia palmoil futures higher at close of trading

Malaysia palmoil futures higher at close of trading

KUALA LUMPUR (Reuters): Overnight rallies in Chicago and bullish August export figures supported Malaysian palm oil futures on Friday, but last-minute profit-taking capped gains, traders said.

"The market has firmed because of Chicago and news that Indonesia has delayed cutting the tax, but then there was last minute profit-taking," said one.

At the close the benchmark third position November futures contract rose five ringgit at 1,008 ringgit ($265.26) a ton after trading as high as 1,020 ringgit.

Volume was 673 lots against 1,526 at the close on Wednesday. The market was closed on Thursday for the Independence Day celebration.

Export data from cargo surveyors Intertech Testing Services (ITS) and Societe Generale de Surveillance Malaysia Sdn Bhd (SGS) proved bulish.

SGS said Malaysian palm oil exports for August were 726,388 tons against 719,360 tons in July. Earlier, ITS estimated exports at 755,337 tons in August against 733,981 in July.

Indonesia's Finance Minister Prijadi Praptosuhardjo said on Thursday Jakarta had postponed its plan to cut export taxes of crude palm oil (CPO) and its by-products, saying the issue would need to be discussed with the International Monetary Fund.

Jakarta's decision could upset expectations that the Malaysian government would release next week the list of firms to be allowed to export crude palm oil without duty.

Physical Sep (south and central) was offered at 970 ringgit against bids of 965. Trade was reported at 965. Oct (central) was offered at 1,000 ringgit against bids of 995, and traded at 995 to 1,000.

Among refined products, Sep RBD palm oil was offered at $275 a ton FOB, Oct at $280 and Nov/Dec at $285.

There were offers for Sep RBD palm olein at $295, Oct at $300 and Nov/Dec at $305.

Sep RBD palm stearin was offered at $210 and Sep palm fatty acid distillate at $180.