Malaysian crude palm oil futures ended off their lows on Monday as buyers returned to the market after noting a rebound in prices of rival US soyaoil. A Reuters survey showing that stocks of palm oil at end-July may not have been as high as initially thought also helped, said dealers.
The benchmark third-month palm oil contract on Bursar Malaysia Derivatives, October, closed down 4 ringgit at 1,340 ringgit ($357.61) a tonne. It hit a low of 1,333 ringgit, weighed down by a weaker soyaoil and worries about higher production and stocks of palm oil. The high for the day was 1,347 up 3 ringgit from Friday's close. Other traded months settled 3 to 10 ringgits lower. Overall volume totalled 4,256 lots of 25 tonnes each, higher than on Friday's 3,162 lots but still lower than 6,000 lots averaged on a busy day.
But on Monday's estimate were only 6.5 percent higher. "There was a pick up in sales towards the end of last month, so that's why the stocks are revised down despite the rise in production," said a survey participant. The government-run Malaysian Palm Oil Board will issue on Wednesday production, exports and closing stock numbers for July. Two independent shipping surveyors, Interlake Testing Services and Society Generals de Surveillance will issue on the same day export estimates for the first 10 days of August.
Soyaoil futures on the Chicago Board of Trade fell for a second straight day on Friday, with the August contract declining 0.53 cent to 23.62 cents a lb. But on Monday's electronic session, contracts for September through December rebounded 0.30 to 0.33 cent. Soya and palm compete for export destinations and their prices often move in step.
In physical dealings of crude palm oil on Monday, August contract was offered at 1,335 ringgit a tonne and bid at 1,330 in the southern and central regions of Malaysia.
Trades were reported at 1,330 ringgit in the south and 1,325-1330 in the central zone.
PALM OIL FUTURES:
August (south): 1335.
Open/High/Low: 1342/1347/1333.
Previous closes: 1335.
PALM OIL PHYSICALS:
October (3rd month): 1340.
Previous settlement: 1344.
FUTURES:
Ended off lows as buyers returned after a rebound in prices of rival US soyaoil.
PHYSICALS: Flat or little changed.
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