KUALA LUMPUR, March 18: Malaysian crude palm oil futures relinquished earlier gains on profit-taking and disappointment over slow imports by India, China and Pakistan, traders said on Monday.

The new benchmark third-month June contract ended one ringgit lower at 1,180 ringgit ($310.53) a ton after trading as high as 1,202 ringgit, which sparked profit-taking.

Volume was very heavy at 4,898 lots.

Cargo surveyor Societe Generale de Survaillance Malaysia (SGS) Sdn Bhd said India, the world’s largest edible oil importer, purchased 22,150 tons of palm oil in March 1-15, down from 53,640 in February 1-15. Imports stood at 16,150 tonnes in March 1-10.

SGS data has disappointed a lot of people because it shows little improvement in demand by India, China and Pakistan, said one trader in Kuala Lumpur.

The SGS said Malaysian palm oil exports for March 1-15 stood at 429,832 tons, up from 302,160 in February 1-15.

China was the biggest buyer of Malaysian palm oil for March 1-15, taking 100,410 tonnes, followed by the United States which bought 30,845 tons and Pakistan with 30,500 tons, SGS said.

European Union countries bought 78,515 tons, it added.

Traders said the market was cautious on talk from the freight sector that vessel bookings for shipments from Malaysia/ Indonesia to India were estimated to have reached up to 300,000 tons so far this month.

Players said India was looking for palm oil to replenish its dwindling stocks of edible oil, adding that they expected to see a rise in exports from Malaysia to consuming countries in the second half of March.

Traders had said Malaysia’s palm oil exports could reach one million tons in March, up from 733,101 tons in February.

In physical palm oil, the March contract for the southern and central regions saw bids at 1,175 ringgit a ton versus offers at 1,180. Trade was reported at 1,175 for both sides.

The April contract for south and central saw bids at 1,180 ringgit against offers at 1,185. There were deals at 1,180 ringgit for both sides.—Reuters