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Malaysia palm oil ends lower, trade volatile 2

KUALA LUMPUR: Malaysian palm oil futures closed lower on Thursday in volatile trade as profit-taking alternated with renewed buying interest.

Wednesday's gains in Chicago soyoil futures boosted early prices but the market failed to clear the 1,170 ringgit a tonne support level, and this triggered technical selling.

Third-position June futures KPOM0 ended down three ringgit at 1,154 ringgit ($303.68) a tonne after trading between 1,138 and 1,170.

Expectations of further weather-related gains in Chicago soybean futures and continued refiner covering on the physical market helped lift prices from their lows towards the close.

"It was very choppy today. We saw technical selling from 1,170 but there was good support at 1,140," said a trader.

Traders said renewed talk in the market Indonesia would soon reduce its export tax on crude palm oil also capped prices earlier.

A government source said earlier this month Indonesia, the world's second largest palm oil producer after Malaysia, has considered cutting the export tax to three percent from 10 percent because of ample domestic stocks. Physical crude palm oil prices rebounded from morning lows on renewed covering by refiners amid talk of Chinese buying interest, traders said.

March (south) crude palm oil was last offered at 1,180 ringgit a tonne against bids at 1,170. It traded betwen 1,160 and 1,175 ringgit.

Among refined products, April RBD palm oil was offered at $330 a tonne FOB, and May/June at $332.50.

April RBD palm olein saw offers at $350, with May/June offered at $352.50.

April/May RBD stearin was offered at $270, and April palm fatty acid distillate at $195.

PALM OIL FUTURES PALM OIL PHYSICAL

June (3rd mth) 1154 Mar (south) 1180

Open/High/Low 1166/1170/1138 Prev close 1175

Prev settlement 1157 sellers' quote

PALM OIL FUTURES - Closed lower after a choppy session as renewed buying found profit-taking.

Expectations of further weather-related gains in Chicago soybean futures and continued refiner covering on the physical market helped lift prices from their lows.

The market's failure to breach 1,170 ringgit resistance level triggered technical selling earlier.

PALM OIL PHYSICALS - Rebounded from early lows on covering by refiners amid talk of Chinese buying interest. -Reuters