Palm oil ends mixed on thin volume

Palm oil ends mixed on thin volume

KUALA LUMPUR (Reuters): Malaysian palm oil futures closed mixed on Monday on profit-taking and a lack of follow through support amid uncertainty over the market's direction and the government's planned duty-free concession.

Traders said concern over the domestic stocks situation also capped prices.

"With production picking up, people are worried about a possible stock build-up in the coming months. This will likely limit the market's upside," said a trader in Kuala Lumpur.

The benchmark third-month November futures contract ended up three ringgit at 1,011 ringgit ($266.05) a ton after trading as high as 1,019.

Volume was a thin 389 lots.

Gains in Chicago soyoil futures on Friday and bullish export data for August had earlier supported prices.

Traders had expected the government this week to release the list of firms that will be allowed to export crude palm oil without duty, but Jakarta's decision to postpone cutting its export taxes was expected to leave the Malaysian market in the dark again.

Physical prices were little changed in quiet dealings. Sept (south) was offered at 970 ringgit a ton against bids of 965. It traded at 972.50 and 970 ringgit.

Among refined products, Sept RBD palm oil was offered at $275 a ton FOB, Oct at $280 and Nov/Dec at $287.50.

There were offers for Sept RBD palm olein at $295, Oct at $300 and Nov/Dec at $307.50.

Sept RBD palm stearin was offered at $212.50 and Sept palm fatty acid distillate at $180.