KUALA LUMPUR, Nov 28: Malaysian crude palm oil futures fell on Wednesday with players getting uneasy about Nov output and the possibility of India raising its RBD palm olein base price, traders said.

“People are talking about production and the Indian base price. What we see today was partly liquidation and partly speculative selling,” said one trader.

Traders reported persistent talk November palm oil output might not be as low as influential private forecaster Ivan Wong had predicted.

Wong has estimated this month’s output at 1.04 million tons, down nine per cent from October. His fresh estimates will be released to the market on December 7.

Rumours were also circulating that India planned to raise its RBD palm olein base price to $340 per ton from $307, which might affect exports from Malaysia to one of its main buyers.

But after the market closed, an Indian Finance Ministry official said there was no immediate plan to change the base prices for edible oil. The official declined to give further details.

At the close the benchmark third-month February contract was down 46 ringgit at 1,096 ringgit ($288.42) a ton after trading as high as 1,135 ringgit.

Volume was heavy at 3,424 lots.

February broke key support at 1,120 ringgit in morning trade.

In the physical sector, the December contract for the southern and central regions was offered at 1,075 ringgit a ton against bids at 1,060. Trade was reported at 1,075 to 1,085 for south and at 1,075 to 1,080 for central.

The January contract for the southern and central regions saw bids at 1,080 ringgit against offers at 1,090. There was no trade.—Reuters