KUALA LUMPUR, Oct 16: Malaysian palm oil futures extended losses on Tuesday, dragged down by declines in Chicago soyaoil futures and worries over rising domestic stocks.

The new benchmark third-month January contract finished 16 ringgit down at 906 ringgit a tonne, after falling as low as 897. Volume was hefty at 3,024 lots.

Dealers said the drop was expected given the weakness in soyoil since Friday and palm oil export data released on Monday.

Soyaoil is not looking good and palm oil stocks are building at the same time. This means only one thing sell, said a trader.

Exports of Malaysian palm oil rose to 443,614 tonnes in the first 15 days of October from 359,967 in the same September period, cargo surveyor Societe Generale de Surveillance said on Monday.

But the rebound was seen unlikely to be enough to cover production for October, estimated at 1.15 million tons, dealers said.

Malaysia’s palm oil stocks stood at 1.21 million tons at the end of September, up from 890,413 tons at end-August.

Unless there’s a big jump in exports over the next two weeks, end-October stocks could even reach 1.4 million tons, another trader said.

Chicago Board of Trade soyaoil futures again set new contract lows on Monday after bearish USDA production and supply/demand data.

In physical palm oil, offers for October crude palm oil for the southern and central regions stood at 835 ringgit a ton, down from Monday’s close of 845. Bids were at 825-835 ringgit. Trade was reported at 825-830 for both regions.

Offers for November CPO for the south and central regions were at 855 ringgit against bids at 845. No deals were reported.

LONDON: Palm oil prices were lower in Europe on Tuesday due to concern over rising output and stocks, particicpants said.