Malaysian palm oil closes lower on export data
Malaysian palm oil closes lower on export data
KUALA LUMPUR (Reuters): Malaysian palm oil futures closed lower on Friday on renewed selling prompted by smaller exports for the first 10 days of November, traders said.
Cargo surveyor Societe Generale de Surveillance Malaysia Sdn Bhd (SGS) said Malaysian palm oil exports for November 1-10 were at 281,819 tons compared with 297,931 tons for the first 10 days of October.
Earlier, another cargo surveyor, Intertech Testing Services (ITS), estimated Malaysia's palm oil exports for the first 10 days of November at 310,445 tons against the firm's estimate of 255,409 tons for the same period in October.
"We were expecting good numbers following the ITS estimates but exports turned out to be smaller than last month. The market was obviously disappointed," said one trader.
SGS figures are more closely watched by the market.
The benchmark January KPOF1] contract ended down 12 ringgit at 838 ringgit ($220.53) a ton.
Traders said overnight losses in Chicago soyoil futures also weighed on prices and players were worried about an expected increase in Indian import duties on edible oils.
India's Food Minister Shanta Kumar on Thursday declined comment on when the government planned to decide on increasing the duties. Last week the government promised to make an early decision on raising import duties on edible oils but it has set no date for an announcement.
India raised import duty on palm olein in June to 44.04 percent from 33 percent.
India's budget for the fiscal year to March 2001 provides for import duties on most oils to be increased to up to 100 percent.
Physical prices also retreated on the export data in light trading.
November (south) crude palm oil was offered at 805 ringgit a ton against bids of 800, and traded at 810 to 805 ringgit.
Among refined products, November RBD palm oil was offered at $227.50 a ton FOB and December at $232.50.
There were offers for November RBD palm olein at $247.50 and December at $252.50.
November RBD palm stearin was offered at $187.50 and December at $192.50. November palm fatty acid distillate was offered at $132.50.