KUALA LUMPUR, June 30: Malaysian crude palm oil futures closed lower on Monday on swelling domestic stocks as exports slowed, traders said.

The benchmark September contract on the Bursa Malaysia Derivatives Exchange fell 25 ringgit to close at 3,598 ringgit ($1,102) a ton.

Refiners are finding it very difficult to run their operations as the storage tanks are literally overflowing and with no overseas orders, many may have to cease operations for a while,” said a trader with a foreign broker.

Traders expect Malaysia’s end-June palm oil stocks to reach to 2.1 million tons.

Cargo surveyor Intertek Testing Services said June exports fell 10 per cent to 1,086,572 tons.

Another surveyor, Societe Generale de Surveillance, said June exports fell 12.5 per cent to 1,106,635 tons.

Most nearby contracts also fell with October falling 16 ringgit and November losing 22 ringgit.

Overall volume was 6,022 25-ton lots.

Crude oil rose more than $3 a barrel on Monday to a new record high above $143, propelled by heightened tensions between Israel and Iran over Tehran’s nuclear programme. US soyaoil for July delivery at the Chicago Board of Trade edged up 0.5 per cent, reversing some losses made last Friday.

In Malaysia’s physical market, crude palm oil for July shipment in the southern region was quoted at 3,570/3,580 ringgit a ton. Trades were done at 3,570-3,620 ringgit.

August was quoted at 3,580/3,600 ringgit for the southern region. No trades were heard.—Reuters