(Updates prices, adds graph on exports)
* Traders wait for Oct. 1-25 palm oil exports due Friday
* Profit-taking, stronger ringgit push prices down -trader
* Ringgit rises as much as 0.7 pct against U.S. dollar in
* Palm oil to seek support at 2,449 ringgit -technicals
By Anuradha Raghu
KUALA LUMPUR, Oct 24 (Reuters) - Malaysian palm oil futures
ended lower on Thursday, snapping four days of gains as
investors booked profits from prices that hit near two-month
highs in the previous session
A stronger ringgit also curbed overseas buying interest, but
optimism that stocks in Malaysia, the world's second-largest
producer, might remain below the 2-million-tonne mark this year
capped losses. Prices are still not far off Wednesday's top of
2,485 ringgit - the highest level since Aug. 28.
Market players are betting that output in October, typically
the highest-producing month of the year, has lost steam while
exports continue to hold steady.
Growers' estimates show production during Oct. 1-20 could
have dropped by 10.5 percent, quelling initial fears that
Malaysian output would surge towards the end of the year and
cause a stock buildup.
"The market was overdone yesterday, so there's some
profit-taking today," said a trader with a foreign commodities
brokerage in Kuala Lumpur.
"Also, the ringgit has strengthened a bit compared to
yesterday. Palm's resistance is at 2,500 ringgit, and the
immediate support is at 2,450 ringgit," the trader added.
The Malaysian ringgit rose as much as 0.7 percent
to 3.1460 per dollar early Thursday, but dropped back to 3.1630
later in the day.
By Thursday's close, the benchmark January contract
on the Bursa Malaysia Derivatives Exchange had dropped 0.9
percent to 2,461 ringgit ($779) per tonne.
Total traded volume stood at 44,093 lots of 25 tonnes each,
higher than the usual 35,000 lots.
Technicals showed Malaysian palm oil is expected to seek a
support at 2,449 ringgit per tonne before retesting a resistance
at 2,491 ringgit, Reuters market analyst Wang Tao said.
Weak crude oil prices also weighed on palm, as it shifts
demand away from tropical oil as an alternative biodiesel
feedstock. Oil prices have dropped following a steep run up in
U.S. crude oil inventories, showing there was ample supply in
the world's largest oil consumer.
U.S. crude for December delivery gained 42 cents to
$97.28 on Thursday after ending at its lowest settlement since
July 1 on Wednesday.
Demand for Malaysian biodiesel products could pick up in the
next few months after European Union member states agreed to
impose higher duties on biodiesel imported from Indonesia and
Argentina from November onwards.
Market players will also be looking at cargo surveyor export
data for the Oct. 1-25 period, to be issued on Friday, to gauge
demand of the tropical oil.
In competing vegetable oil markets, the U.S. soyoil contract
for December was flat in late Asian trade, while the
most-active January soybean oil contract on the Dalian
Commodities Exchange rose 0.1 percent.
Palm, soy and crude oil prices at 1017 GMT
Contract Month Last Change Low High Volume
MY PALM OIL NOV3 2473 -15.00 2459 2478 353
MY PALM OIL DEC3 2461 -20.00 2456 2481 4639
MY PALM OIL JAN4 2461 -21.00 2455 2481 23416
CHINA PALM OLEIN MAY4 6124 -34.00 6108 6218 991834
CHINA SOYOIL MAY4 7202 +6.00 7168 7226 753958
CBOT SOY OIL DEC3 41.49 -0.01 41.30 41.61 5382
NYMEX CRUDE DEC3 97.29 +0.43 97.00 97.69 22164
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
Crude in U.S. dollars per barrel
($1=3.161 Malaysian ringgit)
(Editing by Anupama Dwivedi and Tom Hogue)
- Commodity Markets
- USA News
- Malaysian ringgit
- crude oil prices