KUALA LUMPUR, July 10: Poor July 1-10 exports data dragged down Malaysian crude palm oil futures on Wednesday after weather-spurred gains in the Chicago soy futures failed to provide lasting support, traders said.

Cargo surveyor Societe Generale de Surveillance Malaysia (SGS) said palm oil exports stood at 230,693 tons in the first 10 days of July, down from 240,327 tons in the same period last month.

Some traders have expected expects to reach at least 250,000 tons.

At the close, the benchmark third-month September futures were down 15 ringgit at 1,345 ringgit ($353.95) a ton. Overall volume was heavy at 2,460 lots.

Some traders said speculators were using the rally in Chicago to jack up prices despite the weak fundamentals in the Malaysian market as local output was expected to increase in coming months.

Respected private forecaster Ivan Wong put July output at 1.01 million tons, up from 954,000 tons in June.

The market doesn’t have much strength to move up because supply is improving while demand is flat, said one trader.

In physical trading of palm oil, the contracts for both July and August saw bids at a standard 1,355 ringgit a ton, against sale offers at 1,365 ringgit.

Trades were reported at 1,365 to 1,370 ringgit July (south and central).—Reuters