960422

Malaysian

palm oil

prices fall

KUALA LUMPUR: Palmoil prices ended lower in a technical correction to last week's high levels and bearish April 1-20 export data, with traders saying that a crop report by forecaster Ivan Wong having no impact on the market.

Traders said the immedaite direction would depend on the performance of the Chicago soyoil futures market tonight.

"If soyoil in Chicago comes down tonight, then palmoil will drop with July futures expecting to fall to 1,250 ringgit (the next support level)," a dealer said.

At the close, the contract closed at 1,260 ringgit, down 18 ringgit ($505.62) a tonne after trading in a 15-ringgit range.

Prices had fallen today as sentiment was weakened by the lower palmoil exports for April 1-20. Cargo surveyor SGS (M) Sdn Bhd said palmoil exports during the period were 307,103 tonnes compared with 413,890 tonnes in March 1-20.

"The lower exports were mainly due to less demand this month after a high export in March," a dealer said.

Malaysia's Palm Oil Registration and Licensing Authority (PORLA) said exports were 563,023 tonnes in March.

The fall also reflected a technical correction to last week's high prices which were attributed to active refiners' buying, traders said.

The market was not affected by April crop estimates by Ivan Wong which were within market expectations, traders said. Wong estimated April output to fall by two percent to 628,000 tonnes. Traders have projected output in April to be unchanged or down by two percent from March.

Wong also said end-April stocks were at 690,000 tonnes against market estimates of 680,000-690,000 tonnes.

Trading was cautious with turnover totalling 1,217 lots.

Physicals April crude palmoil (south) was offered at 1,295 ringgit after trading at 1,285.

In refined products, May RBD palmoil was offered at $532.50 tonne FOB Malaysia, June at $532.50 and July/Aug/Sep at $532.50. June was traded at $530.

Traders said May RBD palm olein was offered at $562.50, June at $557.50 and July/Aug/Sep at $555. May was traded at $562.50 and $560.

May RBD palm stearin noted offers at $435 and June at $430. May/June palm fatty acid distillate saw sellers at $350.

(Prices in Ringgit/tonne local delivery/Crude, Bulk)

BID/ASK TRADES

Apr 1285/1295 1285 (south)

May 1285/1290

(Prices in US dlrs/Tonne local for Malaysian ports,Bulk)

RBD PALM OIL

May 532.50 slr

June 532.50 slr traded 530

RBD PALM OLEIN

May 562.50 slr traded 562.50/560

June 557.50 slr

July/Aug/Sept 555 slr

RBD PALM STEARIN

May 435 slr

June 430 slr

PALM FATTY ACID DISTILLATE

Apr 350 slr

May 350 slr.-Reuter