Malaysian crude palm oil futures dropped 0.4 percent on Friday ahead of the long weekend as market participants scaled back their expectations for January exports due out next week, traders said. A big rise is key to easing inventories in the world's number 2 palm grower from a 13-month top in December, which together with ample global vegetable oil supplies pressured palm prices in recent weeks.
"Initially people talked about 1.5 million tonnes, then 1.41 million tonnes. But I think the latter figure is more realistic," said a trader with a commodities brokerage in Kuala Lumpur. The benchmark April contract on the Bursa Malaysia Derivatives Exchange settled down 9 ringgit at 2,442 ringgit per tonne. Traded volume was 14,890 lots of 25 tonnes each.
Another trader with a Kuala Lumpur-based investment bank said end-January Malaysia's palm oil stock may ease to around 2.1 million tonnes if exports hit 1.41 million tonnes. "It (stock) is lower than December but it is still above the 2.0 million psychological benchmark," he said.
INDONESIAN PALM TRADES In Indonesia, Jakarta-based PT KPB Nusantara, formerly known as the state marketing centre, sold all 5,500 tonnes of palm oil at a top price of 7,131 rupiah ($0.763) per kg, against 7,133 rupiah a day before. Producers in Medan, home to Indonesia's main palm oil export port of Belawan, sold palm oil at 7,132 rupiah per kg against 7,088-7,103 rupiah a day ago. Refiners in Jakarta offered refined, bleached, deodorised (RBD) palm oil, used as cooking oil, at 7,600-7,650 rupiah per kg against 7,550-7,650 rupiah on Thursday.
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