Malaysian crude palm oil futures extended their losses on Tuesday as the market remained under pressure from a weak US soyoil. Fresh crop and trade estimates for October through January from private forecaster Ivan Wong failed to make an impact, with the numbers little changed from an outlook he issued on Friday.
Dealers said the market's focus now was on official numbers for palm oil output, exports and closing stocks in October, due from the government-run Malaysian Palm Oil Board on Wednesday.
Two cargo surveyors watched by the market - Societe Generale de Surveillance and Intertek Testing Services - will also issue export estimates for the first 10 days on November on Wednesday.
"That's quite a lot to digest in a day," said a trader.
The exchange will be closed from November 11-16 as Malaysia celebrates two religious festivals back-to-back.
The impending long break has led to a "holiday mood" on the market, limiting trading activity since Monday.
On Tuesday, trade volumes dwindled to 3,262 lots of 25 tonnes each. The market usually sees 6,000 lots or more on a busy day.
The benchmark January palm oil contract closed four ringgit, or 0.3 percent, down at 1,403 ringgit ($369.21) a tonne.
It earlier hit a low of 1,397 ringgit - breaking the key psychological support of 1,400 ringgit.
Other contracts settled four to seven ringgit down.
"There is little mood for optimism in the market now, with all these numbers and holidays coming from tomorrow and the way soyoil has been performing," said the trader.
Soyoil futures on the Chicago Board of Trade closed 0.05 to 0.22 cent a lb down on Monday on selling sparked by renewed talk over the bumper US soya harvest due this year.
Soyoil and palm oil compete for the same export destinations and their prices often move in step. Palm oil's benchmark contract fell 10 ringgit, or 0.7 percent, on Monday after a drop in soyoil and selling by players winding down positions ahead of higher trading deposits enforced from Tuesday.
The exchange has raised deposits on all open positions to safeguard the market from undue volatility when it resumes trade after the holidays.
The deposit for a single lot of palm oil, accounting for 25 tonnes, is now at 2,750 ringgit a tonne for spot month contracts, from 2,250 ringgit previously.
For forward contracts, the new deposit is 2,500 ringgit, compared with 2,000 ringgit in the past.
Prices of physical crude palm oil were also down.
Physical oil for spot November saw buyers/sellers at 1,460/1,465 ringgit a tonne in Malaysia's southern and central regions, against Monday's close of 1,465/1,470.
Trades were reported at 1,465-1,460 ringgit in both regions.
December saw bids/offers at 1,435/1,455 ringgit a tonne, against Monday's 1,455/1,460. No trades were reported.
PALM OIL FUTURES:
November (south): 1465.
Open/High/Low: 1402/1406/1397.
Previous close: 1470.
PALM OIL PHYSICALS:
January (3rd month): 1403.
Previous settlement: 1407.
FUTURES:
Benchmark January down four ringgit to 1,403 ringgit ($369.21) a tonne.
PHYSICALS:
November offered five ringgit a tonne lower.