Malaysian palm oil down on soya and exports weigh

02 Dec, 2004

Malaysian crude palm oil futures closed lower on Wednesday, surrendering gains from the morning, as the market remained depressed over export estimates for November released a day ago. Bursar Malaysia Derivatives' third-month palm oil futures contract, February, ended six ringgit, or 0.4 percent, down at 1,419 ringgit ($373.42) a tonne. It hit an intrude high of 1,436 up 11 ringgit, or 0.8 percent, from Tuesday's close.
The low was 1,415 ringgit. The broader futures market closed 6 to 7 ringgits down.
Society Generale de Surveillance, the main surveyor of oil palm cargoes closely watched by the market, on Tuesday estimated export of Malaysian oil palm products for November at 1,095,099 tonnes, down 10.8 percent from the 1,227,363 tonnes it tracked for October.
Dealers said the market would have rallied if the November numbers had matched or exceeded October's.
Palm oil was up at Wednesday's open after soyaoil futures on the Chicago Board of Trade rose 0.18 to 0.35 cent a lb at Tuesday's close, snapping a selling streak that had persisted since on Friday.
Soya and palm compete for the same export destinations and their prices often move in step. But profit taking emerged in palm oil as the export numbers released on Tuesday weighed on sentiment.
Trade on Wednesday totalled 6,773 lots of 25 tonnes each versus on Tuesday's 6,310 lots. Physical prices of crude palm oil closed flat to lower after a slight gain the morning.
Physical oil for December saw bids/offers closing at 1,455/1,465 ringgit a tonne in Malaysia's southern and central regions, against on Tuesday's 1,460/1,465. It was quoted at 1,465/1,470 in the morning.
Deals closed at 1,460 ringgit in both regions. Physical oil for January saw buyers at 1,445 ringgit a tonne and sellers at 1,455, against on Tuesday's 1,450/1,460. Trades were reported at 1,455 ringgit.
PALM OIL FUTURES:
December (south): 1465.
Open/High/Low: 1430/1436/1415.
Previous closes: 1465.
PALM OIL PHYSICALS:
February (3rd month): 1419.
Previous settlement: 1425.
FUTURES:
Benchmark February down 6 ringgit or 0.4 percent to 1,419 ringgit ($373.42) a tonne.
PHYSICALS: December offers down 10 ringgit a tonne.

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