KUALA LUMPUR, Aug 27: Malaysian crude palm oil futures edged lower on Monday as expectations of a cyclical upturn in production offset a slight increase in exports, traders said.

But losses were limited by Indonesia’s plans to announce a flexible export for the crude palm oil dealers said.

The benchmark November contract on the Bursa Malaysia Derivatives Exchange settled down 9 ringgit at 2,421 ringgit per ton ($695), after touching an intra-day low of 2,391 ringgit.

The rise in supply is a reality with players expecting the increase to be as much as 20 per cent, said a leading trader.

Exports have been strong but it might not be enough to counter the supply glut. However, Indonesia’s tax plans have been supportive for the market as there may be more focus on Malaysian palm oil, which does not have such taxes, another trader said.

Exports of Malaysian palm oil products from Aug. 1 to 25 rose 8.8 per cent to 979,164 tons from 899,668 tons shipped between July 1 and 25, cargo surveyor Intertek Testing Services said on Saturday.

Another cargo surveyor, Societe Generale de Surveillance, said exports during the same period rose 2.7 per cent to 961,807 tons. Other traded months fell between 5 and 20 ringgit in overall trade of 8,427 lots of 25 tons each.

Palm oil, used in products ranging from confectioneries and cosmetics to biofuel, is more than 12 per cent off an historic high of 2,764 ringgit reached in June.

But Malaysia’s palm oil production in August will rise more than 11 per cent from last month due to a seasonal upswing, after a slowdown during the first half of the year, a top industry analyst said.

In the physical market, crude palm oil for August shipment in Malaysia’s southern region was quoted at 2,520/2,525 ringgit a ton. Deals were done between 2,500 and 2,530 ringgit.—Reuters