Malaysian palm oil down

11 Nov, 2006

Malaysian crude palm oil futures closed lower on Friday, due to a decline in crude oil prices and as players took profit ahead of the weekend. Market-friendly data issued by the state-run Malaysian Palm Oil Board and cargo surveyors failed to lift prices.
The benchmark January contract on the Bursar Malaysia Derivatives exchange ended down 12 ringgit at 1,675 ringgit ($461) a tonne after trading as high as 1,696 ringgit. Open interest, which indicates the number of players in the market, was down to 83,195 lots compared with 90,054 lots on Thursday. Exports of Malaysian palm oil products for November 1-10 rose 0.8 percent to 487,580 tonnes from 483,583 tonnes during October 1-10, cargo surveyor Interlake Testing Services said.
Another cargo surveyor, Society General de Surveillance, whose data is closely watched by the industry, said exports during the period rose marginally to 451,440 tonnes.
The MPOB said stocks at the end of October fell 11.44 percent and output was down 13.03 percent. It said exports during the month jumped 9.13 percent. Oil prices fell 1 percent on Friday as dealers took profits from the previous day's surge, while the West's energy watchdog said a tighter fourth quarter would follow the biggest third-quarter stockbuild in 15 years.
US light, sweet crude for December deepened losses to stand 75 cents lower at $60.41 a barrel. Palm oil market often follows crude oil, driven by rapid growth in the global biofuel industry based on vegetable oils, which are seen as a cheaper option to fossil fuels. In the physical crude palm oil market, November shipment for the southern region was quoted at 1,645/1,650 ringgit a tonne. Trades were done between 1,650 and 1,660 ringgit a tonne.

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