KUALA LUMPUR, May 6: Malaysian palm oil futures extended losses on Monday with worries over huge soyabean stocks in South America putting pressure on the market.

Argentina still rules the market. The market is congesting towards the downtrend. I think price will touch the 1,185 ringgit support level, said one technical analyst.

At the close, the benchmark third-month July futures closed 13 ringgit lower at 1,192 ringgit ($313.68) a ton on an average volume of 1,800 lots.

Argentina has harvested a little more than a third of its projected 29.5 million ton soyabean crop but traders expected harvests to gain pace this month.

Brazil, the second largest global soy producer after the United States, has nearly completed harvesting its soy crop, forecast by United States Department of Agriculture (USDA) at a record 43.5 million tons.

Some traders said exports from Indonesia could slow in May because of a stronger rupiah, giving room for arch rival Malaysia to sell more oil.

Indonesia exported around 600,000 tons of palm oil in April, up 28 per cent from March. Of this, Indonesia shipped around 250,000 tons to India and 70,000 tons to China.

Other traders said Indonesia’s exports to China reached around 45,000-55,000 tons last month.

Some traders said talk of lower production in April and prospects of good exports in May and June was supportive. Others said they were less optimistic on the price.

Private forecaster Ivan Wong has forecast April palm oil output at 863,000 tons, down 3.4 per cent from March. He put end-April stocks at 1.05 million tons, down from the official 1.17 million tons at end-March.

There was a two-month delay in harvest because of the crisis in Argentina. They would start harvesting properly in May, said one trader.

Once they start harvesting, there’s no place for them to keep the beans. They will either have to crush the beans or export them. That’s the bearish news, he added.

In the physical market, the May/June contract for the southern and central regions saw bids at 1,195 ringgit a ton, against sale offers at 1,200.

Trade was reported at 1,195 to 1,200 ringgit for May in south and central. There were no reports of sales for June contract.

AMSTERDAM: Palm oil edged lower in Europe on expected competition from South American soy crops while activity was lacklustre with the UK out on holiday, traders said.