JAKARTA: Malaysian palm oil futures shed early gains to close lower for a second consecutive session on Wednesday, as the market braced for export and production data from the world’s second-biggest producer.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed 14 ringgit, or 0.36% lower, at 3,907 ringgit ($831.98) per metric ton, after rising as much as 0.77% earlier in the day.

The contract lost 3.83% on Tuesday, its steepest daily decline since May 31, 2023.

“Today crude palm oil futures is having a correction from yesterday’s sell off on the back of supportive Dalian and Chicago Board of Trade soyoil market while awaiting Malaysian Palm Oil Board (MPOB) data,” a Kuala Lumpur-based trader said, referring to the monthly data on production, export and stock due to be released on June 10.

Malaysian palm oil inventories by the end of May were seen at 1.75 million metric tons according to the median estimate of 10 traders, planters and analysts polled by Reuters, up 0.39% from 1.74 million tons recorded by MPOB at the end of April.

Palm oil falls more than 3% on weaker Dalian contracts and crude oil

Exports of palm oil products were estimated to have jumped by 14.32% in the same period to 1.41 million tons due to recovery in palm’s competitive price to soybean oil in May.

The MPOB is scheduled to release its monthly palm oil data on June 10.

Dalian’s most-active soyoil contract lost 0.56%, while its palm oil contract fell 0.13%. Soyoil prices on the Chicago Board of Trade were down 0.25%.

European Union palm oil imports so far in the 2023/24 season that started in July had reached 3.12 million tons by June 2, lower than the 3.85 million tons imported a year earlier, data from the European Commission showed.

India’s palm oil imports rose by 12.4% in May from the previous month to a four-month high as the recent correction in prices led to higher purchases, five dealers told Reuters.