KUALA LUMPUR, June 20: Malaysian crude palm oil futures ended 2.4 per cent lower on Wednesday, deepening losses as a sharp decline in exports and rising supplies weighed on the market.

The benchmark September contract on the Bursa Malaysian Derivatives Exchange settled down 59 ringgit, or 2.4 per cent, at 2,377 ringgit ($693) a ton.

Exports are lower as consumers have been delaying purchases because the prices were too high, said a leading trader.

Prices are moving downwards on the perception that production will further outpace demand, another trader said.

Palm oil ended 0.9 per cent lower on Tuesday as players booked profits a day after the market surged on Indonesia's decision to raise export taxes on the commodity.

Palm oil, used in products ranging from candies and cosmetics to biofuel, is more than 16 per cent off a high of 2,764 ringgit reached earlier this month.

Other traded months fell between 49 ringgit and 65 ringgit in overall trade of 12,580 lots of 25 tons each.

September palm oil on Singapore’s Joint Asian Derivatives Exchange was down $9.00 at $701.75 a ton in light trade.

The Kuala Lumpur Plantations Index fell 1.07 per cent at 6,149.59 points because of declining palm oil prices. Sector leader IOI Corp Bhd fell 3.54 per cent and Asiatic Development Bhd lost 2.33 per cent.

Exports of Malaysian palm oil products for June 1-20 fell 15 per cent to 661,626 tons from 775,979 shipped between May 1 and 20, cargo surveyor Intertek Testing Services said on Wednesday.—Reuters