ahead of the long weekend as market participants scaled back their
expectations for January exports due out next week, traders said.
A big rise is key to easing inventories in the world’s number 2
palm grower from a 13-month top in December, which together with ample
global vegetable oil supplies pressured palm prices in recent weeks.
“Initially people talked about 1.5 million tonnes, then 1.41
million tonnes. But I think the latter figure is more realistic,” said a
trader with a commodities brokerage in Kuala Lumpur.
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The benchmark April contract on the Bursa Malaysia Derivatives
Exchange settled down RM9 at RM2,442 per tonne. Traded volume was 14,890
lots of 25 tonnes each.
Another trader with a Kuala
Lumpur-based investment bank said end-January Malaysia’s palm oil stock
may ease to around 2.1 million tonnes if exports hit 1.41 million
tonnes.
“It (stock) is lower than December but it is still
above the 2.0 million psychological benchmark,” he said.
On the
physical market, February South declined to RM2,470 per tonne from
RM2,480 per tonne on Thursday.
Source : Business Times
