Malaysian crude palm oil futures closed lower on Monday, extending last week's losses, as players worried about falling exports and rising stocks.
Leading industry analyst Ivan Wong, in his latest crop report released on Monday, estimated Malaysian palm oil exports in June at 925,000 tonnes, down from an earlier projection of 945,000-950,000 tonnes and May's 950,790 tonnes.
Wong maintained an earlier stock forecast of 1.20 million tonnes at end-June, but projected inventories to rise to 1.56-1.57 million tonnes by end-September. "Unless we see a big jump in this month's exports, the market will remain under pressure," said a trader.
The benchmark third-month September palm oil futures on the Malaysia Derivatives Exchange (MDEX) ended down 30 ringgit at 1,484 ringgit ($390.53) a tonne, the day's low. Other traded contracts were down between 20 and 30 ringgit. Overall volume was 4,737 lots, up from Friday's 4,216 lots.
A mixed close in rival Chicago soyoil on Friday and a holiday on Monday for the US Independence Day also dampened sentiment on the palm oil market, traders said.
Soyoil futures on the Chicago Board of Trade (CBOT) ended up 0.49 cent to down 0.35 cent per lb on Friday, with July up 0.49 cent at 28.80 cents and December down 0.21 cent at 24.24.
Physical crude palm oil prices also fell in line with futures.
July saw buyers/sellers at 1,515/1,525 ringgit a tonne in the southern and central regions, against Friday's close of 1,545/1,550.
Trades were reported at 1,535-1,520 ringgit in both regions.
August was bid/offered at 1,505/1,515 ringgit. No trade was reported.
PALM OIL FUTURES:
July (south): 1525.
Open/High/Low: 1519/1525/1484.
Previous close: 1550.
PALM OIL PHYSICALS:
September (3rd month): 1484.
Previous settlement: 1514.
FUTURES:
Benchmark third-month September down 30 ringgit at 1,484 ringgit ($390.53) a tonne.
PHYSICALS: Also down.
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