January 21, 2006	Saturday	Zilhaj 20, 1426

KUALA LUMPUR, Jan 20: Malaysian palm oil ended flat in modest trade on Friday, with players limiting their exposure ahead of the weekend despite encouraging export figures.

Societe Generale de Surveillance, an exports tracker widely followed by Malaysia’s palm industry, said Jan. 1-20 shipments of palm oil were up 5.1 per cent from Dec. 1-20. It had previously noted a 8.0 per cent decline for Jan. 1-15 versus Dec. 1-15.

Palm oil prices have been trapped below the 1,450 ringgit resistance for weeks due to thin export numbers, although industry sources say lower production in the first quarter could reduce physical stocks standing at record levels.

Palm oil stocks in Malaysia, the world’s largest producer of the commodity, hit a record 1.6 million tons at end-November and remained unchanged at end-December as exports worsened.

January is also a time for long festive breaks in Malaysia, meaning less work on plantations.

Trades were reported at 1,412.50-1,415 ringgit in both regions.—Reuters