JAKARTA, Sept 10: Malaysian crude palm oil futures dropped more than 1 per cent on Wednesday following news of a fall in exports during the first 10 days of this month, dealers said.

Prices rose as much as 1.8 per cent following the release of a fall in August palm oil stock figures by the Malaysian Palm Oil Board, but turned lower after the announcement of a fall in exports in the first 10 days of this month.

Cargo surveyor Societe Generale de Surveillance said exports of Malaysian palm oil products for Sept 1-10 fell 2.3 per cent to 392,467 tons from 401,800 shipped between Aug 1 and 10.

Earlier in the day, official crop agency Malaysian Palm Oil Board (MOPD) said Malaysian crude palm oil stocks fell 6.5 per cent to 1,848,130 tons in August, from a revised 1,977,397 tons in July.

A Reuters poll had forecast palm oil stocks to rise 1.2 per cent in August from a month earlier.

The lower-than-expected stocks triggered a rebound in palm futures, but it was short-lived.

The price of palm oil, used in products from soaps to biodiesel, has dropped 23.64 per cent since the start of the year, due to faltering crude oil and concerns about high stocks.

The benchmark November crude palm oil contract on the Bursa Malaysia Derivatives Exchange ended down 25 ringgit, or 1.06 per cent, at 2,329 ringgit ($673) a ton.

The overall volume was 13,242 lots of 25 tons each.

The trader said palm prices may test 2,300 ringgit soon.

Industry analyst Drab Mistry said on Wednesday that palm oil futures are likely to ease to 2,200 ringgit per ton as surging production and weak demand weigh on the market.

In the physical market, crude palm oil for September delivery was at 2,380/2,420 ringgit a ton in south and central Malaysia. No trades were done in either region.

The state marketing centre in Jakarta sold crude palm oil at 6,235 rupiah a kg, unchangd from Tuesday.

In Jakarta, refineries sold refined, bleached, deodorised (RBD) palm olein, which is used in cooking oil, at 6,700-6,800 rupiah a kg against 6,850 rupiah a kg on Tuesday.—Reuters