Prices also eased amid fears that Chinese demand during the Lunar New Year period may fall due to higher domestic stocks at ports and as many traders and exporters will be away on holidays, a vegoil exporter in Johor said.
Palm oil stocks at Chinese domestic ports totaled 715,000 tons as on Jan. 11, regional traders said.
While CPO's production growth is likely to slow in 2012 after a strong recovery in 2011, inventory levels in Malaysia may not fall that quickly analysts said. "China's improving soybean crushing margins will Lead to higher supply of soyoil and may indirectly affect Chinese palm oil imports," an analyst at a Kuala Lumpur-based bank said.
Market participants are also keeping a close watch on USDA's estimates for global soybean production for this marketing year.
Any cut in output in major soybean growing countries Argentina and Brazil could limit further declines in CPO at a support level of MYR3,170/ton, a broker in Kuala Lumpur said.
In the cash market, refined palm olein for January shipment was offered at $1,077.50/ton and cash CPO for prompt shipment was offered MYR30 lower at MYR3,220/ton.
Open interest on the BMD was 116,157 lots, versus 114,847 lots Wednesday. One lot is equivalent to 25 tons.
A total of 17,886 lots of CPO were traded versus 16,062 lots Wednesday.
