Malaysia's palm oil ends off lows

Malaysia's palm oil ends off lows

KUALA LUMPUR (Reuters): Malaysia's palm oil futures closed off the day's lows on Tuesday with players awaiting fresh developments on the possibility of duty-free exports.

The benchmark third position October futures contract ended down six ringgit at 1,037 ringgit (US$272.89) a ton after trading as high as 1,045 ringgit. Volume was 462 lots compared with 772 lots at the close on Monday.

"Once again we saw some deliberate buying," said one trader in Kuala Lumpur.

"Players who spent so much money to support the market yesterday did not want to lose their efforts just like that. That's why prices went up when the market was about to close," he added.

Traders said they did not see any fresh demand from China or India, which was the reason why the market stayed depressed.

Primary Industries Minister Lim Keng Yaik said on Monday Malaysia, the world's largest producer and exporter of palm oil, was considering the removal of duties on CPO exports this year.

Malaysia's export tax is currently based on a graduated scale starting with 10 percent on prices above 600 ringgit a ton.

Some trades were reported on the physical side, but slow demand for products was expected to cap gains.

Aug (south) crude palm oil was offered at 1,020 ringgit a ton against bids of 1,015. It traded from 1,010 to 1,015.

Aug (central) crude palm oil was offered at 1,015 ringgit a ton against bids of 1,010. It traded from 1,005 to 1,010.

Among refined products, Aug RBD palm oil was offered at $282.50 a ton FOB, Sep at $287.50 and Oct/Nov/Dec at $297.50.

There were offers for Aug RBD palm olein at $302.50, with Sep at $307.50 and Oct/Nov/Dec at $317.50.

Aug/Sep RBD palm stearin was offered at $232.50 and Aug/Sep palm fatty acid distillate at $190.