KUALA LUMPUR, Nov 30: Malaysian crude palm oil futures closed down on Wednesday, reversing a firm trend at the midsession, on fears that poor demand through November could leave the physical market with its highest ever stocks of oil.
At the close, the third-month palm contract on Bursa Malaysia Derivatives, February, was down 0.4 per cent, or 5 ringgit, at 1,391 ringgit ($368.67) a ton.
The benchmark ontract broke the long-defended support of 1,400 ringgit on Monday after a sell-off in rival US soyaoil.
December soyaoil on the Chicago Board of Trade fell 0.29 cent a lb on Tuesday, and another 0.19 cent in Wednesday’s electronic trade, conducted during day hours in Asia.
In Malaysia’s physical crude palm oil market, deliveries for December saw bids at 1,395 ringgit a ton and offers at 1,400 ringgit in both the southern and central regions. Bids/offers closed at 1,405/1,410 on Tuesday.
Trades were done at 1,400-1,397.50 ringgit on Wednesday.—Reuters
