JAKARTA: Malaysian palm oil futures inched higher on Monday ahead of the release of the country’s export numbers, although the gains were capped by concerns over Indonesia easing export restrictions and higher Malaysian palm oil production.

The contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 0.54% to 3,724 ringgit ($836.48) a tonne by midday.

It recouped some of the 6% losses posted in the previous two sessions.

Malaysian crude palm oil prices are likely to remain weak for most of the third quarter of this year, the country’s commodities minister said on Monday, following rival producer Indonesia’s move to scrapped its export levy.

“If demand remains steady, maybe we may see 4,000 ringgit level else it will attract selling interest at high price,” a Kuala Lumpur based trader said.

Palm ends four-day slump on weaker ringgit, bargain buying

Cargo surveyors were expected to release July 1-25 export data, which traders expected would support the price.

Exports of Malaysian palm oil products for July 1-20 fell to 724,283 tonnes from 734,231 tonnes shipped during June 1-20, cargo surveyor Societe Generale de Surveillance said on Monday.

Indonesia is considering removing a domestic sales requirement for palm oil exports as high inventories of the vegetable oil have been holding back a recovery of palm oil fruit prices, the trade minister said last week. Dalian’s most-active soyoil contract lost 0.04%, while its palm oil contract gained 0.54%.

Soyoil prices on the Chicago Board of Trade were down 0.36%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Palm oil may revisit its July 14 low of 3,489 ringgit per tonne, as the bounce from this level has been almost reversed, Reuters technical analyst Wang Tao said.