KUALA LUMPUR, July 25: Malaysian crude palm oil futures fell on Friday as players took profit despite news of higher July 1-25 palm oil exports.

There’s nothing bullish. In fact, the market has resumed a downturn, said a trader at a foreign house. The market had ran up on Thursday on expectations of better July exports.

Cargo surveyor Intertek Testing Services said exports of Malaysian palm oil products for July 1-25 rose 26 per cent to 1,132,797 tons from June 1-25’s 899,327 tons.

Societe Generale de Surveillance, another cargo surveyor, said July 1-25 exports rose 20 per cent to 1,115,660 tons from 926,345 shipped between June 1 and 25.

There is still concern about a build-up in palm oil stocks due to seasonal production rise. The higher exports won’t be enough to clear out the stocks, the same trader said.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange closed down 43 ringgit, or 1.4 per cent, at 3,070 ringgit ($944.9) a ton. An immediate support was pegged at 3,000 ringgit.

Other traded months were between 20 ringgit and 45 ringgit lower. Overall volume was 6,300 25-ton lots.

Crude oil rose slightly on Friday, finding some stability after two weeks of losses as buyers crept back into the market before the weekend.

Concerns that high prices and a weaker US economy will undermine demand have driven oil down more than $20 from a record peak above $147 a barrel set earlier this month.

In the physical market, July/August crude palm oil were bid at 3,110 ringgit in the southern region against offers at 3,120 ringgit. Traders were seen at between 3,100 and 3,110 ringgit.

Indonesian palm oil prices eased on Friday, tracking lacklustre Malaysian market and lack of price mover.

The state marketing centre in Jakarta sold crude palm oil at 8,321 rupiah ($0.912) a kg on Friday, FOB Belawan port in Sumatra, easing from 8,338 rupiah a kg on Wednesday.

The centre did not sell any crude palm oil from the key ports for palm oil exports in Belawan and Dumai on Thursday, which are the benchmark prices at its auction.

—Reuters