Malaysian palm oil ends slightly down

Malaysian palm oil ends slightly down

KUALA LUMPUR (Reuter): Malaysian palm oil prices closed
slightly lower yesterday after drifting in tight ranges due to
players' uncertainties over the market trend, traders said.

"There was little price movement in the afternoon. People are
not sure of the market direction and decided to stay away," a
dealer said.

He added that reports from Indonesia saying that 16,000 tons
of crude palm oil are scheduled to leave for Malaysia on Friday
kept most local players cautious.

Traders in Kuala Lumpur said they are unsure if the shipments
will actually come in.

"If it's true, then prices are going to fall and we see third
month September futures testing new lows," a dealer in Kuala
Lumpur said.

"We are still uncertain about everything as well as the
immediate trend and decided to stay put and refrain from taking
up new positions," the dealer said.

Futures price movements were locked in an eight-ringgit range,
they said. Small falls were scored among all futures contracts.

At the close, the September futures contract closed one
ringgit down at 1,033 ringgit (US$414.50) a ton after trading in
a seven-ringgit range.

"I think the market is consolidating and people are taking a
breather after the volatility in recent days," another dealer
said. Turnover fell to 1,169 lots from 2,281 lots on Monday.

Uncertainty about the fundamental outlook also limited
activity, they said. "People are still concerned about the
increasing domestic stock level if demand is not coming in and
output rises due to the seasonal peak period," a dealer said.

The physical sector saw business confined to nearby CPOs and
selected oils.

In physicals, July (south) crude palm oil was offered at 1,060
ringgit after trading from at 1,062.50 and 1,060. July (central)
saw offers at 1,025 and July (north) at 1,020.

August (north) crude palm oil was offered at 1,060 ringgit
with early business transacted at 1,062.50 and 1,050. August
(central) saw offers at 1,045 ringgit and Sept (south) at 1,060
ringgit.

In refined products, July RBD palmoil was offered at $452.50 a
ton FOB Malaysia, Aug at $450 and Sept $450. July was traded at
$450.

Aug RBD palm olein was offered at $487.50, Sept at $485 and
Oct/Nov/Dec at $485. August was traded at $485 and Sept at $485
and $482.50.

July/Aug/Sept RBD palm stearin was offered at $330 while
July/Aug palm fatty acid distillate saw sellers at $290.