Palm snaps four-session rally as high stocks weigh

Malaysian palm oil futures snapped a four-session rally on Monday, weighed down by higher inventories, though declines were kept in check by expectations of declining production and firmer demand. The benchmark palm oil contract FCPO1! for March delivery on the Bursa Malaysia Derivatives Exchange lost 40 ringgit, or 0.98%, to 4,049 ringgit ($997.78) a metric ton by the close. The market is being pressured by negative sentiment on high stock levels, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd. However, Ng said expectations of slower output and stronger demand in the coming weeks will support prices in the near term. The Malaysian Palm Oil Board is expected to release its December supply and demand data on January 12. Cargo surveyors have estimated that exports of Malaysian palm oil products for December 1-25 rose by between 1.6% and 3% from a month earlier. The Dalian’s most active soyoil contract (DBYcv1) lost 0.28% while its palm oil ...