KUALA LUMPUR, Dec 13: Malaysian crude palm oil futures closed down on Tuesday, surrendering early gains, after official data showed stocks of oil in the physical market had reached their highest level last month.

The government-run Malaysian Palm Oil Board (MPOB) confirmed trade fears by putting a record stock of 1.6 million tons for end-November, up 6.98 per cent from October.

The benchmark contract was up 2 ringgit at midday, before MPOB’s numbers.

The broader futures market closed down 1 to 11 ringgit.

Overall volume stood at 3,244 lots of 25 tons each — higher than Monday’s 2,372 lots, but much lower than 6,000 lots seen on a typically busy day.

The market had been expecting a growth of 20-25 per cent.

In the physical crude palm oil market, December contract was offered at 1,390 ringgit a ton against bids of 1,385 ringgit in Malaysia’s southern region. In the central zone, offers/bids stood at 1,392.50/1,390 ringgit.

Trades were reported at 1,385 ringgit in the south and 1,390-1,387.50 in the central zone.

—Reuters