KUALALUM PUR, July 27: Palm oil stocks in Malaysia, the world's largest producer of the commodity, are expected to fall 4 per cent in July as higher exports and lower output eat into the reserves, a Reuters poll showed on Thursday.

Palm oil output in Malaysia is estimated to fall 2.1 per cent to 1.3 million tons in July, according to the median estimate of five plantation houses polled by Reuters.

Another cargo surveyor, Societe Generale de Surveillance, said exports of palm products for July 1-25 rose 12.4 per cent from 849,560 tons shipped during the same period in June.

China was again the biggest buyer of Malaysian oil palm products for July 1-25, taking 372,907 tons, followed by the United States with 78,491 tons and Pakistan with 52,900 tons, SGS said.

European Union countries, another major destination, bought a total of 160,222 tons.

Other contracts rose between one and 10 ringgit a ton. In the physical market, crude palm oil for August shipment saw sellers at 1,530 ringgit a ton and bids at 1,525 ringgit a ton. Trades were done at around 1,525 ringgit a ton.

The prices have risen about six per cent since the beginning of the year as Malaysia moves closer to the October launch of palm-based biodiesel at domestic pumps.—Reuters