Malaysian palm oil rebounds

Malaysian palm oil rebounds

KUALA LUMPUR (Reuters): Malaysian palm oil futures bounced back at the close on Thursday on short covering and renewed concern that bad weather may hit plantations, traders said.

The benchmark third-month February KPOG1] futures contract was up eight ringgit at 822 ringgit ($216.31) a ton after trading as low as 808. Volume was 1,827 lots, down from 2,282 at the close on Wednesday.

"The market has been overdone on the selling and I believe weather is still a factor in the market. There was a strong support at 800 ringgit," said one trader in Kuala Lumpur.

Cargo surveyor Societe Generale de Surveillance Malaysia Sdn. Bhd. (SGS) said Malaysian palm oil exports in November were at 913,245 tons against 1,060,627 tons in October.

At least 11 people were killed in the past week in Malaysia as monsoon rains triggered floods in several areas where oil palm is mostly grown.

Weather forecasters have warned more heavy rain is on the way and the unusually wet weather could last until February.

Physical December (south) saw offers at 785 ringgit a ton and bids at 780, with trade reported at 770 to 780. Physical December (central) was offered at 790 ringgit a ton and bids at 785. Trade was done at 780 to 785.

January (south) was offered at 815 ringgit against bids of 810. Trade was done at 805. January (central) saw offers at 820 against bids of 815. No trade was reported.

Among refined products, December RBD palm oil was offered at $220 a ton FOB and January at $227.50.

There were offers for December RBD palm olein at $237.50 and January at $245.

December RBD palm stearin was offered at $200 and December palm fatty acid distillate was offered at $155.