JAKARTA, July 10: Malaysian palm oil futures slipped on Thursday despite gains in crude oil prices as weak exports and concern about swelling stocks dampened demand.

The benchmark September contract on the Bursa Malaysia Derivatives Exchange eased 4 ringgit to 3,511 ringgit ($1,080) per metric ton on the day. It fell early on to trade as low as 3,464 ringgit a ton but later recovered.

Palm oil is now 22 per cent below a record high hit in early March but still 15.11 per cent higher than at the start of the year.

Other traded months fell between 5 and 53 ringgit. Overall traded volumes stood at 7,764 of 25 tons.

Malaysia’s crude palm oil stocks rose 6.38 per cent to a new 25-year high of 2,035,353 tons in June, from a revised 1,913,360 tons in May, official crop agency Malaysian Palm Oil Board said on Thursday.

Exports of Malaysian palm oil products for July 1-10 fell 1.3 per cent to 355,154 tons from 360,000 tons shipped between June 1 and 10, cargo surveyor Intertek Testing Services said on Thursday. Another cargo surveryor Societe Generale de Surveillance said on Thursday exports of Malaysian palm oil products for July 1-10 fell 16.2 per cent to 326,109 tons from 389,300 tons shipped between June 1 and 10.

Dealers said exports might start to recover in mid-July as buyers in China, India and Middle East nations tend to stock up at least two months before the Asian festival season begins in early September.

“Buyers don't want to take the chance of buying now because of weak fundamentals. But on the back of their mind they still have to buy. I think they're still sniffing around looking for cheaper oil,” a dealer said.

Soyoil for July delivery on the Chicago Board of Trade followed on the back of crude oil, edging up 0.24 cent at 64.02 cents per lb in Asian trade on Thursday to extend gains made the previous day.—Reuters