KUALA LUMPUR, July 11: Malaysian palm oil futures recovered from a previous day of losses after the market’s main crop forecaster, Ivan Wong, put a lower production and stock figure for June against earlier estimates.

The benchmark third-month September contract closed 14 ringgit higher at 1,359 ringgit ($358) a ton after the revised projections, which traders said meant a lower opening stock for July.

Traders, however, cautioned that official data for June, due on Friday from the Malaysian Palm Oil Board, could tell a different story.

There are also more numbers to come, said a trader, referring to a June crop report due later on Thursday from the United States Department of Agriculture, which could affect prices of Chicago soyoil, palm oil’s main competitor.

The concerns capped activity with volume staying under 3,000 lots a far cry from the 5,000 to 6,000 lots seen during recent active days. September also closed off its high of 1,371 ringgit, reflecting profit-taking.

Dealers had initially expected the market to trade down, after the 0.05 cent to 0.12 cent loss in soyoil on the Chicago Board of Trade overnight. It instead rose on speculative buying.

By midday, the September contract had recovered two-thirds of the 15 ringgit loss it had on Wednesday in reaction to weak export estimates for July 1-10.

Wong took the market to further heights after the midday break when he gave a final estimate of 945,000 tonnes for crude palm oil production in June against the 954,000 he forecast five days earlier.

The revision meant that month-on-month output had only risen two per cent, against the three per cent he initially forecast.

Accordingly, end-June stocks were seen at 905,000 tons — 5,000 less from previously and 25,000 lower from May, he said.

Wong maintained exports for June at 855,000 tons, against the official 939,971 tons given for May.

In physical trading of crude palm oil on Thursday, the July contract saw bids of 1,370 ringgit in the southern region and 1,365 in the central zone. Sale offers stood at 1,375 in both regions.

August CPO was bid at 1,365 ringgit in the southern and central zones. Sale offers were also standard at 1,375. Business was reported at 1,375-1,370.—Reuters