Malaysian crude palm oil futures dropped for a third day on Wednesday due to a firmer US dollar and some position squaring towards the year end. Expectations of a stock drawdown due to the end of the high production season limited losses. Traders expect stocks to fall about 13 percent to 1.68 million tonnes in December compared with the previous month.
The benchmark March contract on the Bursa Malaysia Derivatives Exchange settled down 21 ringgit at 2,494 ringgit per ($725.8) tonne. The Malaysian ringgit eased on Wednesday, matching its eight-week low hit the previous day as the dollar held broadly firm. Most Malaysian palm oil exports are in the form of products, which are priced in US dollars.
Other vegetable oil markets were mixed. US soyoil for January delivery edged higher after falling earlier on the greenback and prospects of higher South American soybean output. The most-active September 2010 soyoil contract on China's Dalian Commodity Exchange dropped 0.4 percent on prospects that China will import more soybeans this month to crush for its edible oil and feed meal sectors.
INDONESIA PALM TRADES In Indonesia, the state marketing centre, based in Jakarta, sold 5,500 tonnes of palm oil at a top price of 7,189 rupiah ($0.757) per kg against 7,161 rupiah on Tuesday. Producers in Medan, home to Indonesia's main palm oil export port of Belawan, did not hold any auction on Wednesday. Refiners in Jakarta offered refined, bleached, deodorised (RBD) palm oil, used as cooking oil, steady at 7,100 rupiah per kg from previous day.
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