Prices rose as much as 1.8 per cent following the release of a fall in August palm oil stock figures by the Malaysian Palm Oil Board, but turned lower after the announcement of a fall in exports in the first 10 days of this month.
Cargo surveyor Societe Generale de Surveillance said exports of Malaysian palm oil products for September 1-10 fell 2.3 per cent to 392,467 tonnes from 401,800 shipped between August 1 and 10.
Earlier in the day, official crop agency Malaysian Palm Oil Board (MOPD) said Malaysian crude palm oil stocks fell 6.5 per cent to 1,848,130 tonnes in August, from a revised 1,977,397 tonnes in July.
A Reuters poll had forecast palm oil stocks to rise 1.2 per cent in August from a month earlier.
The lower-than-expected stocks triggered a rebound in palm futures, but it was short-lived.
The price of palm oil, used in products from soaps to biodiesel, has dropped 23.64 per cent since the start of the year, due to faltering crude oil and concerns about high stocks.
The benchmark November crude palm oil contract on the Bursa Malaysia Derivatives Exchange ended down RM25, or 1.06 per cent, at RM2,329 (US$673) a tonne. The overall volume was 13,242 lots of 25 tonnes each.
"The rally after the MPOB report could not be sustained toward the closing. It seems that RM2,400 is the resistance level," a trader at a local brokerage said.
The trader said concerns about weak global demand resurfaced after data showed a decline in exports in the first 10 days.
"The data is not good. It sparks fears of defaults," he said. The trader said palm prices may test RM2,300 soon.
Industry analyst Drab Mistry said yesterday that palm futures are likely to ease to RM2,200 per tonne as surging production and weak demand weigh on the market.
In the physical market, crude palm oil for September delivery was at RM2,380/RM2,420 a tonne in south and central Malaysia. No trades were done in either region.
US crude for October delivery was up 23 cents at US$103.49 a barrel at 1101MGT in electronic trading.
Most active December soybean oil contracts at the Chicago Board of Trade declined 0.31 cents to 48.50 cents per lb during Asian trade on yesterday.
RUBBER
MALAYSIAN rubber prices closed higher for the third straight day yesterday, influenced by supply concerns, a dealer said.
He said the tight supply in major producing countries due to wet weather conditions had encouraged the market.
However, the dealer said the market maintained its quiet mode due to lack of transactions.
At noon yesterday, the Malaysian Rubber Board official physical price for tyre-grade SMR 20 added 2.5 sen to 960.5 sen per kg from 958 sen per kg yesterday and latex in bulk increased seven sen to 635 sen per kg from 628 sen per kg previously.
The unofficial sellers' closing price for tyre-grade SMR 20 rose six sen to 964 sen per kg from 958 sen per kg previously while latex in bulk went up 5.5 sen to 638.5 sen per kg from 633 sen per kg previously.
TIN
THE Kuala Lumpur Tin Market (KLTM) closed easier yesterday with the price down US$550 to US$18,500 per tonne on lack of demand and lower tin price on the London Metal Exchange (LME) overnight, dealers said.
LME tin price fell by US$625 to US$18,500 per tonne.
On the local front, bids accounted for 35 tonnes compared with offers at 101 tonnes.
Turnover fell to 64 tonnes from 70 tonnes on Tuesday with interests from Japanese, European and local traders.
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