Malaysian palm oil ends higher on weekend covering

Malaysian palm oil ends higher on weekend covering

KUALA LUMPUR (Reuters): Malaysian palm oil futures closed higher on Friday, rebounding from recent steep losses on pre- weekend short covering and hopes of positive September export data, traders said.

The market took in its stride news that Indonesia's crude palm oil production could reach 7.7 million tons this year and trigger more aggressive sales from Malaysia's rival.

The benchmark third-month December futures contract ended up eight ringgit at 918 ringgit ($241.58) a ton after trading as high as 924. Market volume was 1,148 lots.

But traders said growing domestic stocks were expected to cap further gains.

"The market saw some covering after an oversold position. We should see resistance at 940 and support at 900 next week," said one trader in Kuala Lumpur.

Bearish data from private forecaster Ivan Wong had weighed on prices on Thursday.

Traders said the market appeared to be optimistic about September 1-25 export data due to be released next week, despite India's shift to Indonesian palm oil due to the weakening rupiah and attractive prices Indonesia was offering to prospective buyers.

"I think SGS and ITS figures will be slightly better than the previous month," the Kuala Lumpur trader said.

Cargo surveyors Intertech Testing Services (ITS) and Societe Generale de Surveillance (SGS) are scheduled to release their September 1-25 export figures on Monday.

Physical prices also rebounded on covering interest but trading was generally thin.

Sept (south) crude palm oil was offered at 880 ringgit a ton against bids of 875, and trade was reported at 870 to 875.

Oct (south) crude palm oil was offered at 890 ringgit against bids of 885, and trade was reported at 885 to 890.

Among refined products, Oct RBD palm oil was offered at $252.50 a ton FOB, Nov at $257.50 and Dec at $260.

There were offers for Oct RBD palm olein at $272.50, Nov at $277.50 and Dec at $280.

Oct RBD palm stearin was offered at $187.50 and Oct palm fatty acid distillate at $152.50.