KUALA LUMPUR, July 1: Malaysian crude palm oil futures slipped on Tuesday despite gains in rival soyoil futures, with players worried over rising domestic supplies, traders said.

The benchmark September contract on the Bursa Malaysia Derivatives Exchange settled down 23 ringgit at 3,575 ringgit ($1,094). Other traded contracts were between 16 and 22 ringgit lower in overall trade of 7,328 lots of 25 tons each.

The market is just waiting for fresh leads. Local fundamental is a bit bearish, because production will increase very soon, a dealer said.

Traders ignored gains in soybeans because they are worried about rising stocks, another dealer said. Traders expect Malaysia’s end-June palm oil stocks to reach up to 2.1 million tons from 1.9 million at end-May.

Swelling stocks came on the back of slowing exports.

Cargo surveyor Intertek Testing Services said June exports fell 10 per cent to 1,086,572 tons. Another surveyor, Societe Generale de Surveillance, said June exports fell 12.5 per cent to 1,106,635 tons US soyaoil for July delivery at the Chicago Board of Trade rose 0.20 per cent, tracking gain in soybeans.

The soyabean complex rallied to an all-time high above $16 on concerns that US soya stocks could fall to near-record lows.

In Malaysia’s physical market, crude palm oil for July shipment in the southern region was quoted at 3,560/3,570 ringgit a ton.

Trades were done between 3,550 and 3,570 ringgit.

—Reuters