KUALA LUMPUR, June 24: Malaysian crude palm oil futures closed lower on Tuesday, dragged down by trade selling amid concerns over rising stocks in June due to slowing exports and higher production, a trader said.
Prices of the vegetable oil have fallen more than 5 per cent last week. The trader said end-June stocks could rise to 2.05 million tons this month from 1.91 million tons at end-May.
Cargo surveyors ITS and SGS are due to report Malaysia’s June 1-25 palm oil exports on Wednesday.
By the close, the benchmark September contract
Other traded months fell between 20 ringgit and 63 ringgit. Overall trade rose to 7,341 lots at 25 tons each from the 4,885 lots.
Exports of Malaysian palm oil products for June 1-20 fell 9.8 per cent to 749,776 tons from 830,873 tons shipped between May 1 and 20, cargo surveyor Intertek Testing Services said on Friday. Another surveyor Societe Generale de Surveillance reported declines of 11.2 per cent to 754,539 tons. Crude oil rose for a third straight session on Tuesday to more than $138 a barrel, boosted by a rumoured attack on Iran’s nuclear facilities, which was denied.
In Malaysia’s cash market, crude palm oil for June and July shipments in the southern and central regions were quoted at 3,535/3,550 ringgit a ton. Trades were done at 3,550-3,570 ringgit a ton for the southern region and 3,535-3,550 for the central region.—Reuters
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