Malaysian palmoil fell on Friday, surrendering gains from the morning and the previous day, as players limited their exposure ahead of key exports data due next week, dealers said.
The benchmark third-month December palm oil contract on Bursa Malaysia Derivatives ended 4 ringgit down at 1,428 ringgit ($378.98) a tonne.
It had risen as much as 6 ringgit earlier, touching an intraday high of 1,438, after following a rise in prices of rival US soyoil.
"There's not much activity as people are waiting for the export numbers to move," said a trader.
Talk that export estimates for September 1 to 25 could be around 10 percent higher than August 1 to 25 helped the market to a higher close on Thursday. The export estimates are due on Monday from cargo surveyors Societe Generale de Surveillance (SGS) and Intertek Testing Services (ITS).
SGS, which is more closely watched of the two, said earlier this week it had noted a 9 percent rise in September 1 to 20 exports from a month ago.
September usually marks the start of one the busiest periods for Malaysian palm oil exports as Pakistan, the Middle East and India import more products to prepare for the Muslim Ramadan and Hindu Diwali festivals in November.
Barring the exports, dealers said some investors were worried about the surge in production of palm oil expected this month.
A Reuters survey on Thursday of five leading plantation houses in Malaysia showed that a new record for palm oil production could be expected this month, with output about 5.7 percent above the last high in August.
Stocks of both crude and refined palm oil left in the market at end-September could be 6.5 percent higher than the volume from end-August, the survey showed.
The broader futures market closed down 6 ringgit to up 4 ringgit, reflecting the worry over the production and stocks forecast .
Overall trading volume was 4,212 lots of 25 tonnes each, compared with Thursday's 6,295 lots. The market typically sees 6,000 lots or more on an active day.
In physical business of crude palm oil, September and October saw closing offers for 1,435 ringgit a tonne and closing bids for 1,425 in the southern region of Malaysia.
In the central zone, the contracts were quoted at 1,430/1,425 ringgit.
Trades were reported at 1,425 ringgit in the south and 1,425-1,427.50 in the central region.
PALM OIL FUTURES:
September (south): 1435
Open/High/Low: 1435/1438/1428
Previous close: 1435
PALM OIL PHYSICALS:
December (third month): 1428
Previous settlement: 1432
FUTURES: Benchmark December down 4 ringgit at 1,428 ringgit ($378.98) a tonne as players limited their exposure ahead of export estimates for September 1 to 25.
PHYSICALS: Offers for September flat from a day ago.
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