Malaysian palm falls 2.6 pct on exports, supply fears

By the midday break, the benchmark September contract on the Bursa Malaysian Derivatives Exchange was down 64 ringgit, or 2.6 percent, at 2,372 ringgit ($691) a tonne.

"Exports are lower as consumers have been delaying purchases because the prices were too high," said a leading trader.

"Prices are moving downwards on the perception that production will further outpace demand," another trader said.

Palm oil ended 0.9 percent lower on Tuesday as players booked profits a day after the market surged on Indonesia's decision to raise export taxes on the commodity.

Palm oil, used in products ranging from candies and cosmetics to biofuel, is 16 percent off a historic high of 2,764 ringgit reached earlier this momth.

Other traded months fell between 47 ringgit and 68 ringgit in overall trade at 5,543 lots of 25 tonnes each.

September palm oil on Singapore's Joint Asian Derivatives Exchange was down $14.50 at $696.25 a tonne in thin trade.

The Kuala Lumpur Plantations Index fell 1.01 percent at 6,153.66 points on lower palm oil futures. Sector bellwether IOI Corp Bhd was down 2.65 percent and Kuala Lumpur Kepong Bhd slid 0.75 percent.

But Golden Hope Plantations Bhd was unchanged.

Exports of Malaysian palm oil products for June 1-20 fell 15 percent to 661,626 tonnes from 775,979 tonnes shipped between May 1 and 20, cargo surveyor Intertek Testing Services said on Wednesday.

Another surveyor, Societe Generale de Surveillence will release its export data later in the day.

In Malaysia's physical market, crude palm oil for June shipment in the southern region was quoted at 2,530/2,550 ringgit a tonne. Trades were done at 2,550 ringgit.

Source: Reuters