Palm market cools ahead of crop data

Palm market cools ahead of crop data

KUALA LUMPUR (Reuters): Malaysian palm oil futures closed lower, with players taking profits and trying to correct a buying frenzy ahead of official February crop data due on Thursday.

With many expecting bearish data, the market saw double-digit losses on several contracts as it shed recent gains.

Benchmark third-month May futures tumbled 20 ringgit to 832 ringgit ($219) a ton.

Despite shrinking export markets and taxes imposed by India, Malaysian palm oil futures have performed surprisingly strongly in the past month, giving rise to speculation that the government was supporting the market.

Physical palm oil prices remained stable, though they were traded down.

March south and central crude palm oil were both offered at 810 ringgit against bids at 800. South traded at 815 to 810 and central from 820 to 810.

April south crude palm oil saw offers at 830 ringgit against bids at 825, while central was offered at 810 against 825. South was traded at 847.50 to 830 and central from 845 to 835.