KUALA LUMPUR, Dec 20: Malaysian palm oil futures edged lower on Thursday as technical selling hurt prices, although losses were curbed by investor optimism that zero export tax early next year will boost shipments of the crude grade and cut stocks.

Malaysia, the world's No.2 producer of the tropical oil, has faced record high stocks since September, putting prices on track for their worst annual performance since 2008. The low prices, down almost 27 per cent so far this year, have enabled the Malaysian government to set the crude palm oil export tax for January at zero per cent, which could see Malaysia grab more market share from top producer Indonesia. Traders are even expecting February taxes to remain at zero. “Today the market is still trying to find a base. Technically, they are trying to set it down below 2,300 ringgit per ton,” said a trader with a foreign commodities brokerage.—Reuter