KUALA LUMPUR, Nov 24: Malaysian crude palm oil futures ended lower on Thursday, weighed down by weakness in rival US soyaoil, but trading was thin as players awaited Friday’s release of export estimates for Nov. 1-25.
Whatever the export numbers tell us tomorrow is not going to be a very different story from what we’ve heard so far, a trader in Kuala Lumpur said.
But it’s the only lead in a market bent on following every move and gyration in CBOT soyaoil.
The third-month crude palm oil contract on Bursa Malaysia Derivatives, February, ended down 2 ringgit at 1,412 ringgit ($373.64) a ton, off the day’s low of 1,404.
Other traded contracts were down 2 to 3 ringgit.
Overall volume stood at 1,947 lots of 25 tons each, down from Wednesday’s 3,638 lots. The market can easily surpass 6,000 lots on a busy day.
Prices have taken a hit in recent weeks after poor export numbers of palm oil following long holidays in early November for Diwali and Eid al-Fitr festivals.
Societe Generale de Surveillance (SGS), a cargo tracker closely watched by the industry, said on Monday Malaysian exports of oil palm products for Nov. 1-20 were estimated to have fallen 14 per cent from Oct. 1-20. SGS will release estimates for Nov. 1-25 on Friday.
Volatile swings in US soyaoil have also weighed on palm oil prices. Soyaoil and palm oil compete for exports and their prices often move in step.
Soyaoil futures on the CBOT or Chicago Board of Trade closed down on Wednesday, with the key December contract losing 0.35 cent to 21.63 cents per lb.
In physical dealings of crude palm oil, the November contract saw buyers/sellers at 1,410/1,415 ringgit a ton in both the southern and central regions of Malaysia.
Trades were reported at 1,410-1,412.50 ringgit. —Reuters
