Palm oil steady, hopeful on China

Palm oil steady, hopeful on China

KUALA LUMPUR (Reuters): Malaysia's palm oil futures were mostly stable at the close on Thursday with players ignoring bearish May crop data and keeping their faith in a possible increase in Chinese purchases this year.

"We know that Ivan Wong's figures are going to be bearish. That's why the market did not seem to bother to look at the data," said one trader in Kuala Lumpur.

"On the other hand, people are still hoping China will soon enter the market to purchase more oil," he added.

Private forecaster Wong said palm oil output was estimated to have risen to 991,000 tons in May, up 7.5 percent from a month earlier.

At the close, Malaysia's benchmark third-month August contract was up three ringgit at 823 ringgit ($216.58) a ton after trading as high as 825 ringgit.

Overall volume was 1,385 lots.

In the physical sector, June crude palm oil (CPO) for the southern and central regions was offered at 815 ringgit a ton against bids at 810. Trades were done at 810 to 812.50 for south and at 810 for central.

July CPO for the southern and central regions saw offers at 825 ringgit against bids of 820. Trade was reported at 820-825 for south and at 820 for central.

Among refined products, June/July RBD palm oil was offered at $235 a ton FOB.

There were offers for June/July RBD olein at $252.50 and June RBD palm stearin was offered at $182.50. June palm fatty acid distillate was offered at at $152.50.