Palm oil futures close with reduced gains

Palm oil futures close with reduced gains

KUALA LUMPUR (Reuters): Malaysia's palm oil futures closed with pared gains on Wednesday due to a lack of follow-through buying ahead of private forecaster Ivan Wong's crop estimates for September due on Thursday.

Export data for September 1-20 and overnight gains by Chicago soyoil futures had supported earlier prices, but worries remained over growing domestic stocks.

The benchmark third-month December futures contract ended up four ringgit at 920 ringgit (US$242.11) a ton after trading as high as 931.

"The export numbers are good but the main worry is still on the stock situation given the big production expected in the coming months," said one trader.

Cargo surveyor Societe Generale de Surveillance Malaysia Sdn Bhd said Malaysian palm oil exports for the first 20 days of September were at 478,088 tons against 385,113 for the same period in August.

Earlier, cargo surveyor Intertech Testing Services (ITS) estimated Malaysia's palm oil exports for September 1-20 at 473,312 tons.

Traders said the market remained nervous about end-month stocks as recent estimates indicated exports were not high enough to reduce the local total.

Malaysia's palm oil stocks at the end of August stood at 1.19 million tons, up from 1.07 million at end-July.

Physical prices were barely changed due to a lack of interest, with players awaiting Wong's crop report. Sept (south) crude palm oil was offered at 880 ringgit a ton against bids of 870, and trade was reported at 870.

Oct (south) crude palm oil was offered at 900 ringgit against bids of 890, with trade done between 880 and 900.

Among refined products, Oct RBD palm oil was offered at $250 a ton FOB, Nov at $255 and Dec at $260.

There were offers for Oct RBD palm olein at $270, Nov at $275 and Dec at $280.

Oct RBD palm stearin was offered at $190 and Oct palm fatty acid distillate at $155.