KUALA LUMPUR, June 12: Malaysian crude palm oil futures ignored friendly official May crop data and ended lower on Wednesday as players booked profits from Tuesday’s rally ahead of exports figures for the first half of June.

Players also liquidated positions ahead of US Department of Agriculture’s monthly crop supply/demand report due later on Wednesday, traders said.

Benchmark August contract closed eight ringgit down at 1,437 ($378.16) a ton after trading as low as 1,432.

Volume stood at 3,335 lots, down from a staggering 5,091 lots on Tuesday.

Traders pegged immediate support at 1,425 ringgit and resistance at 1,450.

The market is pausing after yesterday’s rally. But we believe the uptrend remains intact given the strong fundamentals, said a trader.

Exports figures for the first 15 days of June will be a key factor in determining immediate market direction, he added.

The Malaysian Palm Oil Board (MPOB) said on Wednesday crude palm oil output was up 7.0 per cent to 924,797 tons in May from 864,467 tons in April, and against 985,061 in May 2001.

The MPOB’s May output data was slightly higher than private forecaster Ivan Wong’s estimates of 920,000 tons, but the official stocks were lower than his forecast of 960,000 tons.

The MPOB said end-May palm oil stocks were do on 12.22 per cent to 929,472 tons against 1.06 million tons at end-April, and compared with 1.19 million tons at end-May last year.

Exports in May stood at 939,971 tons, up from 863,873 tons in April and 868,047 tons in May 2001, MPOB said.

Traders said strong market fundamentals, such as minor increases in output, lower stocks and steady overseas demand, were supporting the market.

We expect this trend to continue in June and see Malaysian palm oil stocks at as low as 850,000 tons as of end-June, the lowest level for this time of year since 1998, it added.

In the physical market, the June/July contract for the southern and central regions saw bids at 1,470 ringgit a ton, against sale offers at 1,475 ringgit.

Trades were reported at between 1,470 and 1,480 ringgit for June (south and central).—Reuters