KUALA LUMPUR, April 11: Malaysian palm oil futures were lower on Thursday as players unwound positions ahead of the release of March output, end-month stocks and exports data.

At the close, benchmark third-month June futures settled four ringgit lower at 1,172 ($308.42) a ton after trading as low as 1,165 ringgit.

Overall market volume was slow at 1,194 lots.

The official Malaysian Palm Oil Board (MPOB) is scheduled to release the crop data on Friday.

Freight brokers said vessels booking for shipments to India from Malaysia/Indonesia had reached up to 200,000 tons so far this month.

India, the world’s largest edible oil importer, could buy up to 300,000 tons in April, higher than the normal monthly intake of 200,000 tons, in order to replenish the dwindling stocks, said traders.

Kuala Lumpur dealers trading with China said Beijing had so far allowed local importers to buy up to 2.3 million tons of palm oil. China is set to import 2.4 million tons of palm oil this year following its entry to the World Trade Organization (WTO).

Malaysia’s palm oil output was estimated to have risen 14.4 per cent month-on-month to 885,000 tons in March, traders said on Thursday, quoting private crop forecaster Ivan Wong’s data.

They said Wong forecast end-March stocks at 1.18 million tons compared with the official 1.28 million at end-February.

March exports were estimated at 870,000 tons, against the official 663,270 tons in February, they said.

In physical trading of palm oil, the April contract for the southern and central regions was offered at 1,170 ringgit a ton against bids at 1,165. Business was reported at 1,165 ringgit for south and at 1,165 to 1,170 for central.—Reuters