Stock worries spark palm oil liquidation

Stock worries spark palm oil liquidation

KUALA LUMPUR (Reuters): Malaysia's palm oil market saw further liquidation at the close on Tuesday due to persistent worries over high stocks, which some traders said could reach 1.5 million tons in February due to poor exports.

The benchmark third-month April futures contract shed 22 ringgit at 724 ringgit ($190.52) a tonne. Volume was 2,710 lots.

"There are rumors that production in February could reach a minimum of 900,000 tons. So if exports don't show any great progress, the closing stocks in February could reach 1.5 million tonnes," said one trader in Kuala Lumpur.

Physical February (south and central) crude palm oil was offered at 690 against bids of 685, and no trade was done.

March (south and central) saw offers at 710 ringgit, bids at 705 and trade at 710 for south.

Among refined products, February RBD palm oil was offered at $195 a tonne FOB and March at $200.

There were offers for February RBD olein at $200 and March at $205.

February RBD palm stearin was offered at $175 and February palm fatty acid distillate at $172.50.