Rising stocks drag KL palm oil prices lower

Rising stocks drag KL palm oil prices lower

KUALA LUMPUR (Reuters): Malaysian palm oil futures closed lower on Monday, extending last week's losses on liquidation amid worries over large domestic stocks.

Traders predicted further falls as players were expected to unwind positions ahead of the end-year holiday.

The Commodity and Monetary Exchange of Malaysia (Commex) will be closed from December 25 to January 1 for Christmas, the Muslim Eid al-Fitr and New Year holidays.

The new third-month March futures contract ended down 11 ringgit at 795 ringgit ($209.21) a ton.

The market had touched a high of 810 ringgit in early trade on the back of Friday's gains by Chicago soyoil futures.

Cargo surveyor Societe Generale de Surveillance Malaysia Sdn Bhd (SGS) said on Friday Malaysian palm oil exports in the first 15 days of December were at 396,317 tons compared with 415,505 in the same period in November.

Malaysia's palm oil stocks at the end of November stood at a record high of 1.52 million tons against 1.41 million at the end of October.

Physical prices also weakened in light trade due to a lack of buyers.

December (south) crude palm oil was offered at 725 ringgit a ton against bids at 720 and trade at 725 to 720.

January (south) crude palm oil was offered at 750 ringgit against bids of 745 and trade at 755 to 745.

Among refined products, January RBD palm oil was offered at $212.50 a ton FOB and February at $220.

There were offers for January RBD palm olein at $222.50 and February at $230.

December RBD palm stearin was offered at $195 and January palm fatty acid distillate at $167.50.