KUALA LUMPUR, June 19: Malaysian crude palm oil futures closed lower on Wednesday after a volatile session that saw gains wiped out by a late bout of profit-taking.
The market was erratic throughout the day as losses, prompted by weaker Chicago soyoil futures, attracted short covering, only to see prices then reverse back into negative territory.
Traders said players were cautious ahead of export data for the first 20 days of June, due on Thursday.
The benchmark third-month September contract ended down four ringgit at 1,420 ringgit ($373.68) a ton after trading between a low of 1,407 and a high of 1,442.
Overall volume dwindled to 2,731 lots from Tuesday’s 4,952.
Malaysia’s palm oil exports for the first 15 days of June stood at 431,106 tons, up from 389,616 tons for May 1-15, the market’s main cargo surveyor Societe Generale de Surveillance (SGS) said on Monday.
Exports officially stood at 939,971 tons for May.
Traders said another good export performance this month would further draw down domestic stocks and support prices.
Malaysia’s palm oil stocks stood at 929,472 tons at the end of May, down from 1.06 million a month earlier and 1.21 million at end-2001.
Hamburg-based newsletter Oil World said said on Tuesday global 2002 palm oil production is likely to rise only 0.7 per cent on the year to 23.68 million tons.
This low rate compares to average annual increases of 6.8 per cent in the last two years.
In the physical market, the June/July contract for the southern and central regions saw bids at 1,435 ringgit a ton, against sale offers at 1,440 ringgit.
Trades were reported at between 1,440 and 1,455 ringgit for June.—Reuters
