KUALA LUMPUR, July 18: Malaysia’s palm oil futures were cautiously waiting for July 1-20 exports data and fresh crop estimates for this month after players ceased to rely on a weather-driven CBOT, traders said on Thursday.

Everything is on hold now. We are waiting for more leads, such as the exports data, said one dealer.

At the close, the new benchmark third-month futures, October was 14 ringgit lower at 1,409 ringgit ($370.79) a ton after trading as low as 1,391 ringgit.

Overall volume was heavy at 4,531 lots.

Dry weather in soybean growing areas in the US Midwest had pushed up the Chicago Board of Trade in recent weeks and was also resposible for sharp gains in Malaysia’s palm oil futures, which hit a 38-month high of 1,550 ringgit on Tuesday.

But forecast of rains in the Midwest for this week reversed the trend, with CBOT soyaoil futures ending down 0.28 to 0.50 cents per lb on Wednesday.

In India, weather officials said major soybean growing areas received rains late on Wednesday, breaking a long dry spell and bringing cheer to farmers who were on the verge of re-sowing their crops.

India is Malaysia’s main palm oil buyer and some traders have speculated that declines in India’s local oilseed crop could boost imports.

Cargo surveyor SGS and ITS are expected to release their exports data for July 1-20 next week, when private forecaster Ivan Wong is scheduled to issue his fresh crop estimates for this month.

Wong has forecast July exports at 850,00-855,000 tons, down from 897,811 tons in June as reported by the SGS. Wong put July output at as high as one million tons, up from the official 943,471 tons in June.

Some analysts said palm oil futures could fall further 1,379 ringgit because it had failed to close above the 1,411 ringgit support level on Thursday.

Others pegged the downside targets at 1,340-1,300 ringgit and advised players to maintain their short positions.

In the physical market, CPO’s July and August contracts saw bids at 1,415 ringgit a ton in the southern as well as as central regions against sale offers at 1,425 ringgit. Trade was reported at 1,410 to 1,415 ringgit for July (central).—Reuters