Palm oil prices ends down

Palm oil prices ends down

KUALA LUMPUR (Reuters): Malaysian palm oil prices fell back to end lower on Wednesday after rising earlier on the back of a stronger Indonesian rupiah against the dollar.

"Selling returned in the afternoon due to the bearish sentiment," said a trader who expects prices to remain weak in the immediate trend.

"The Indonesian currency was just a temporary factor, that's why the market went up earlier," the trader said.

A stronger rupiah would make Indonesian palm oil less competitive in the export market.

Traders said the market remained concerned over a build-up in Malaysian palm oil stocks amid growing production and slower exports.

Cargo surveyor Societe Generale de Surveillance (SGS) said on Wednesday Malaysian palm oil exports for October 1-20 were estimated at 568,442 tons against 583,925 tons in September 1-20.

By the close, the third month January futures contract was down seven ringgit lower at 1,210 ringgit ($318.42) a ton after trading at a high of 1,237 ringgit earlier.

Traders pegged the contract's support at 1,200 ringgit.