KUALA LUMPUR, May 31: Malaysian crude palm oil futures closed flat on Tuesday, surrendering early gains as it tracked softening prices of rival soyaoil. Indications that exports of palm oil for May had risen at least 18.6 per cent did not inspire investors, who were more worried that output in coming months could offset demand.

It was a very dead market in the afternoon. People were only watching the movements on the CBOT, a dealer said, referring to the Chicago Board of Trade where soyaoil futures were traded.

We are working more on borrowed fundamentals now than those of our own. The ringgit peg is also a big worry. There is constant speculation that Malaysia will revalue its ringgit. A higher ringgit will make palm oil, sold in dollars, more expensive. Malaysia is the largest palm oil producer and can influence the global prices of the commodity.

Exports of Malaysian oil palm products for May could jump 18.6 per cent to 1,357,689 tons from 1,145,153 tons tracked in April, cargo tracking service Societe Generale de Surveillance said on Tuesday. Dealers fear that output of palm oil in Malaysia, the top producing country, could hit a fresh high in May, with an estimated rise of 3 to 5 per cent over April production.

The state-run Malaysian Palm Oil Board will issue on June 10 official production, exports and closing stock numbers for May. Analysts from five plantation companies surveyed by Reuters last week forecast a median of 1,284,346 tons for May output, against the record 1,246,938 tons officially seen in April.

At Tuesday’s close, the benchmark third-month crude palm oil on Bursa Malaysia Derivatives, August, was up 1 ringgit at 1,412 ringgit ($372.37) a ton, sharply off the day’s highs. Its high for the day was 1,424 ringgit and its low 1,408.

Other traded months settled between a fall of 2 ringgit and a gain of 1 ringgit. Volume was 5,132 lots of 25 tons each, just below the 6,000 lots or more typically traded on a busy day. Investors initially bought in after noting the rebound in Chicago soyaoil in Tuesday’s electronic trade, but dealers said funds later sold soyaoil on weather concerns.—Reuters