KUALA LUMPUR, Feb 20: Malaysian palm oil futures closed down on Thursday after export estimates for February 1-20 came in on the lower end of market expectations despite a much-hyped jump in recent sales to China.

Talk that India may soon abolish the premium in palm oil duty against soyoil also fizzled when Malaysian Primary Industries Minister Lim Keng Yaik appeared to drop plans to pressure New Delhi during an ongoing visit there.

Palm oil’s benchmark May futures, stuck in a tight 10-ringgit trading band through the day, ended two ringgit lower at 1,610 ($423.68) a ton after latest export estimates from Societe Generale de Surveillance.

The cargo surveyor put palm oil shipments for February 1-20 at 511,921 tons, down from 625,659 for January 1-15.

We expected around 550,000 tons, due to reports of extensive cargo to China in the last few days, said a dealer.

Palm oil shipments officially stood at 854,077 tons in January. Traders think February’s data would somewhat match that.

Trade was reported at 1,620-1,625 ringgit for both months in both regions.—Reuters