Malaysian palm ends higher

KUALA LUMPUR, Dec 5 (Reuters):  Malaysian palm oil futures ended higher on Friday, reversing most of the week's steep losses as cautious investors held back from another sell-off,  and instead pinned hopes on output and stockpiles easing in December.
Prices dropped early in the session, tracking weakness in crude oil. Brent fell close to $69 a barrel, putting it on track for a second weekly decline, as cuts to Saudi Arabia's official selling prices reverberated across the market.
"People are reluctant to sell further and that is keeping the market supportive," said a trader with a foreign commodities brokerage in Kuala Lumpur, adding that shrinking open interest levels for palm futures are also keeping investors wary.
The benchmark February contract on the Bursa Malaysia Derivatives Exchange edged up 0.3 per cent to 2,173  ringgit ($626) per tonne by Friday's close, pulling up from the intraday low of 2,153 ringgit.
Total traded volume stood at 39,667 lots of 25 tonnes, above the usual 35,000 lots.
Palm oil has recovered losses made earlier in the week, and were little changed from a week ago by end-Friday. The steep falls were triggered by OPEC's decision not to curb output despite a supply glut, which saw crude oil markets plummet.
The Kuala Lumpur-based trader added that optimism that end-stocks peaked in November is also providing a floor to prices.
"We believe December production will fall sharply and from here onwards stocks will not be building up."