Malaysia's palm oil prices rebound but outlook uncertain
Malaysia's palm oil prices rebound but outlook uncertain
KUALA LUMPUR (Reuters): Malaysian palm oil futures rebounded from early losses on short covering, but the outlook remained uncertain following bearish July 1-15 export figures, traders said on Monday.
The official June output, stocks and export figures released by the Malaysian Palm Oil Board (MPOB) were largely discounted by players.
"It's still rangebound trading," said one trader in Kuala Lumpur.
"We saw some early liquidation, but towards the closing, there was some covering. That's why the market is back to nearly unchanged after losing 14 ringgit in the morning," he added.
The benchmark third position October futures contract was last traded at 1,046 ringgit ($273.42) a ton after an early low of 1,036 ringgit. Volume was 1,441 lots.
Traders said resistance was expected at 1,050 ringgit.
The MPOB said Malaysia's palm oil output fell 0.16 percent to 817,613 tonnes in June from 818,900 in May. End-June stocks were down 3.65 percent to 1,038,157 tonnes from 1,077,474 at end-May.
Exports in June rose to 734,676 tonnes from 635,110 in May.
Later on Monday, SGS reported Malaysian palm oil exports for July 1-15 were at 322,240 tonnes compared with 388,710 tonnes for the same period in June.
Traders said some gains, sparked by short covering, were reported on the physical market, but uncertainties on the future trend lingered.
SGS and another cargo surveyor, Intertech Testing Services (ITS), are scheduled to release their July 1-20 export figures this week, which will give more clues on market direction.
July (south) crude palm oil was offered at 1,030 ringgit a ton against bids of 1,025. It traded at 1,020.
Among refined products, July RBD palm oil was offered at $290 a ton FOB, August at $292.50 and September at $295. July RBD palm olein saw offers at $310, with August at $312.50 and September at $315.
July RBD palm stearin was offered at $232.50, with August at $235 and July/August palm fatty acid distillate at $190.