Malaysian palm oil eases further on stock worries
Malaysian palm oil eases further on stock worries
KUALA LUMPUR (Reuters): Malaysia's palm oil futures eased further on Friday on worries over a build-up in domestic stocks, traders said.
They said poor export data for the first half of December also weighed on prices.
Cargo surveyor Societe Generale de Surveillance Malaysia Sdn Bhd (SGS) said Malaysian palm oil exports in December 1-15 were at 396,317 tons against 415,505 in the same period in November.
The benchmark third-month February futures contract ended down 10 ringgit at 791 ringgit ($208.16) a ton.
March, which will be the new third position contract on Monday, closed seven ringgit lower at 806.
"People are still worried about the large stocks as exports have not been very good," said one trader in Kuala Lumpur. But he said the market might not fall much further because domestic demand could improve ahead of the festivities.
The Malaysian Palm Oil Board (MPOB) said on Friday Malaysia's palm oil output fell 1.7 percent to 1.16 million tons in November from 1.18 million in October, and against 988,838 million in November 1999.
It said end-November stocks were up 8.1 percent to 1.52 million tons against 1.41 million at end-October. Stocks were at 1.25 million at end-November last year.
Exports in November stood at 890,068 tons compared with 1.0 million in October and 790,936 in November 1999, MPOB said.
The physical market also softened amid slow demand for both crude palm oil and refined products, traders said.
December (south) crude palm oil was offered at 730 ringgit a ton against bids at 725, and trade was done at 720 to 730.
January (south) crude palm oil was offered at 765 ringgit against bids of 755, and traded at 760 to 765.
Among refined products, December RBD palm oil was offered at $210 a ton FOB and January at $215.
There were offers for December RBD palm olein at $220 and January at $225.
December RBD palm stearin was offered at $197.50 and December palm fatty acid distillate at $165.