KUALA LUMPUR, Oct 11: Malaysian crude palm oil ended lower on Tuesday, after losses in rival US soyaoil and fears over mounting physical stocks of palm oil weighed on the market.
The benchmark third-month crude palm oil contract on Bursa Malaysia Derivatives, December, ended down 6 ringgit at 1,460 ringgit ($387.2) a ton, after trading as low as 1,454.
Other traded months settled down 3 to 10 ringgit.
Overall volume was light, at 3,719 lots of 25 tons each. The market can easily surpass 6,000 lots on a busy day.
The futures market could see heavy liquidation if inventories cross 1.5 million tons at end-October, dealers said.
The prices are holding now because of various speculative factors, but if the stocks keep growing, then pure fundamentals will have to kick in, said another trader.
CBOT soyaoil fell 0.22 to 0.40 cent at Monday’s close, following weakness in soyabeans after the harvest of a big crop. —Reuters
