KUALA LUMPUR, Sept 23: Malaysian palm oil fell on Friday, surrendering gains from the morning and the previous day, as players limited their exposure ahead of key exports data due next week, dealers said.

The benchmark third-month December palm oil contract on Bursa Malaysia Derivatives ended 4 ringgit down at 1,428 ringgit ($378.98) a ton.

It had risen as much as 6 ringgit earlier, touching an intraday high of 1,438, after following a rise in prices of rival US soyaoil.

There’s not much activity as people are waiting for the export numbers to move, said a trader.

Talk that export estimates for Sept. 1 to 25 could be around 10 per cent higher than Aug. 1 to 25 helped the market to a higher close on Thursday.

The export estimates are due on Monday from cargo surveyors Societe Generale de Surveillance (SGS) and Intertek Testing Services (ITS).

SGS, which is more closely watched of the two, said earlier this week it had noted a 9 per cent rise in Sept. 1 to 20 exports from a month ago.

September usually marks the start of one the busiest periods for Malaysian palm oil exports as Pakistan, the Middle East and India import more products to prepare for the Ramazan and Diwali festivals in November.

Barring the exports, dealers said some investors were worried about the surge in production of palm oil expected this month.

A Reuters survey on Thursday of five leading plantation houses in Malaysia showed that a new record for palm oil production could be expected this month, with output about 5.7 per cent above the last high in August.

Stocks of both crude and refined palm oil left in the market at end-September could be 6.5 per cent higher than the volume from end-August, the survey showed. The broader futures market closed down 6 ringgit to up 4 ringgit, reflecting the worry over the production and stocks forecast.—Reuters