Malaysian crude palm oil futures fell on Tuesday as players booked profits from previous day's gains ahead of a December crop report from private forecaster Ivan Wong. Softer prices of rival US soyaoil during Asian trade also weighed on the palm oil market, dealers said. "Players are not keen to hold large positions ahead of Ivan Wong's report," said a trader.
Wong is expected to release his estimates of December output, exports and stock levels on Wednesday. Bursar Malaysia Derivatives' benchmark third-month crude palm oil futures contract, March, ended down 0.9 percent at 1,396 ringgit ($367.37) a tonne.
The contract had risen 1.7 percent on Monday on the back of firmer soyaoil prices. Other traded contracts were down five to 14 ringgits. Overall volume was a moderate 4,641 lots.
Soyaoil futures on the CBOT, or Chicago Board of Trade, closed up 0.16 to 0.32 cent per lb on Monday, with the key January contract up 0.26 cent at 20.87 cents per lb.
But in Asian trade on Tuesday, the March contract was down 0.15 cent at 20.82 cents per lb. January was unthreaded. Soyaoil and palm oil compete for similar export destinations and their prices often move in step.
In physical trade of crude palm oil on Tuesday, the contract for both December and January saw bids at 1,405 ringgit a tonne in Malaysia's southern and central regions, against offers at 1,410 down from Monday's close of 1,415/1,420. Trades were done at 1,415-1,405 in both regions.
PALM OIL FUTURES:
December (south): 1410
Open/High/Low: 1405/1410/1393
Previous closes: 1420
PALM OIL PHYSICALS:
March (third month): 1396
Previous settlement: 1409
FUTURES: Benchmark March down 13 ringgit to 1,396 ringgit ($367.37) a tonne.
PHYSICALS: December offer prices down 10 ringgit a tonne.
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