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.