KUALA LUMPUR, Sept 21: Malaysian palm oil closed down on Wednesday, surrendering early gains, as players cut back on positions ahead of key export numbers due next week.

The benchmark third-month palm oil contract on Bursa Malaysia Derivatives, December, closed down 2 ringgit a ton at 1,424 ringgit ($377.80) a ton. At the mid-session, the contract had stood up 4 ringgit.

People are waiting for the full-month export numbers, and I think that’s why some caution has set in, said a trader.

The market had risen 2 per cent in the previous two sessions on expectations that exports for September would do far better than August after key buyer India cut its base import prices for palm oil.

Societe Generale de Surveillance (SGS), the leading independent surveyor of Malaysian palm oil exports, said on Tuesday it tracked 782,157 tons of shipments for Sept. 1, to 20, up 9 per cent from a month earlier.

On Sept 26, SGS will announce estimates for the whole of Sept.

September is traditionally one of the busiest periods for trade in Malaysian palm oil, when Pakistan, the Middle East and India import more to make special food and cakes for the Ramazan and Diwali festivals in Nov.

Overall volume in palm oil futures stood at 8,158 lots of 25 tons each, up from Tuesday’s total of 7,406 lots. The market typically sees 6,000 lots or more on an active day.

In physical trade, Sept crude palm oil saw offers at 1,325 ringgit a ton and bids at 1,317.50 in both the southern and central regions of Malaysia.—Reuters