KUALA LUMPUR, June 25: Disappointing June 1-25 exports data dragged down Malaysia’s crude palm oil futures on Tuesday and some traders expected end-June stocks to rise further because of a slowdown in consumer demand.

The benchmark third-month September contract touched a high of 1,421 ringgit a ton on market rumours that India was seeking cargoes on a C&F and FOB basis. There were no reported deals.

September settled 13 ringgit lower at 1,392 ringgit ($366.32) a ton on a heavy volume of 6,895 lots.

The exports figures are quite bad, said one trader in Kuala Lumpur, adding that many players had expected the number to reach around 800,000 tons.

Cargo surveyor Societe Generale de Surveillance Malaysia Sdn Bhd (SGS) said palm oil exports for June 1-25 stood at 702,750 tons, down from 800,578 tons for May 1-25.

Based on the figures, some traders said exports may only reach around 830,000 tons for the whole of June because the main buyers seemed to be cutting down on palm oil intake.

Some traders have expected June exports to reach as high as one million tons.

End-June stocks may reach 950,000 tons, up from the official 929,472 tons in May because local output will start to pick up this month, said traders.

Private forecaster Ivan Wong has estimated June palm oil output at 960,000-965,000 tons, up from the official 924,797 tons in May.

The exports data is of course disappointing. But that’s because many ships are still lining up in East Malaysia to load cargoes, said one trader.

Traders said China entered the physical market again and bought RBD palm olein at $410 a ton C&F after purchasing up to 60,000 tons of olein on Monday at $412.50 to $415 a ton.

June/July for the southern and central regions saw bids at 1,425 ringgit a ton, against sale offers at 1,415 ringgit.

Trades were reported at 1,420 to 1,425 ringgit a ton for June/July (south and central).—Reuters