Malaysian crude palm oil futures ended lower on Tuesday, reversing a firm morning, as players sold down on fears of a bearish crop report due on Wednesday from the market's main analyst.
Private crop watcher Ivan Wong was expected to put a closing stock of one million tonnes for December in his latest report, compared with earlier estimates of 920,000 tonnes, palm oil dealers said.
Wong's stock predictions, along with his output estimates, are crucial to the market as they are the only indications for supply other than figures provided on the 12th of each month by the official Malaysian Palm Oil Board (MPOB).
MPOB has put end-November stocks at 920,287 tonnes.
Palm oil futures were under pressure for most of December as players worried that a sharp drop in exports due to long year-end holidays could raise closing stocks.
The benchmark third-month palm oil on the Malaysia Derivatives Exchange, March, ended four ringgit down at 1,780 ringgit a tonne.
The contract touched a high of 1,801 ringgit in the morning after an overnight surge in prices of rival Chicago soyoil.
Spot January palm oil was down three ringgit while February and April closed seven and four ringgit down respectively. May was flat while July bucked the trend, jumping 31 ringgit.
Volume for the day stood at 4,067 lots, up from Monday's 2,319 lots.
In cash dealing of crude palm oil (CPO) on Tuesday, January shipment saw bids/offers at 1,800/1,810 ringgit a tonne in the southern region, against Monday's closing quotes of 1,800/1,810.
January CPO was bid/offered at 1,802.50/1,810 in the central zone.
Trades were reported at 1,810-1,805 ringgit in the south and 1,810-1,802.50 in the central zone.
February CPO saw bids/offers at 1,790/1,800 ringgit. Trades were heard at 1,805-1,800 ringgit in the south and 1,800 in the central region.
PALM OIL FUTURES:
January (south): 1810.
Open/High/Low: 1798/1801/1775.
Previous close: 1810.
PALM OIL PHYSICALS: March (3rd month): 1780.
Previous settlement: 1784.
PALM OIL FUTURES: Third-month March down four ringgit at 1,780 ringgit ($468.42) a tonne.
PHYSICALS: Offer rates steady although traded down.
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