KUALA LUMPUR, June 26: Malaysian crude palm oil futures ended just down on Thursday, after posting some early gains, and dealers said the market was likely to remain range-bound in the near term in the absence of fresh leads.

Futures edged higher earlier on Thursday, as some investors bet on rising demand following Indonesia’s move to raise export taxes on the vegetable oil and weather woes for rival soyoil in the United States.

The market was initially strong, but there was no follow through buying, and as a result the market ended almost flat, said one dealer.

By the close, the benchmark September contract on the Bursa Malaysia Derivatives Exchange fell 3 ringgit, or 0.08 per cent, to 3,535 ringgit ($1,084) a ton. During the day, it hit a high of 3,570 ringgit and a low of 3,516.

Overall volume was 4,994 25-ton lots.

Indonesia will raise palm oil export taxes in July to bring them in line with international prices, a senior trade official said on Wednesday.

The government will raise the palm oil export tax to 20 per cent in July, from 15 per cent in June, while the base export price for crude palm oil will be increased to $1,144 per ton from $1,105.

The new prices will be valid from July 1 until the end of the month. The current prices are reflective of the overall bearishness in the market, the trader said, adding that exports were slowing and supplies building.

Exports of Malaysian palm oil products from June 1-25 fell 9.4 per cent to 899,327 tons from 993,093 tons shipped between May 1 and 25, cargo surveyor Intertek Testing Services said on Wednesday.

Exports of Malaysian palm oil products for June 1-25 fell 12.3 per cent to 926,345 tons from 1,056,282 tons shipped between May 1 and 25, cargo surveyor Societe Generale de Surveillance said on Wednesday.

In Malaysia’s cash market, crude palm oil for June and July shipments in the southern region were quoted at 3,540/3,550 ringgit a ton. Trades were heard at 3,530-3,550 ringgit for the southern region.

The central region saw offers at 3,550 ringgit a ton against bids of 3,530 ringgit for both June and July deliveries.—Reuters