NEW DELHI: Malaysian palm oil futures ended lower on Friday, as estimates of higher inventories in June weighed on prices, with the contract snapping two consecutive weekly gain.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange lost 21 ringgit, or 0.53%, to settle at 3,914 ringgit ($847.08).

For the week, the contract fell 3.1%. Palm oil prices dropped due to higher inventories in June, but expectations that exports would pick up in July provided support, a Mumbai-based trader said.

Malaysia’s palm oil stocks at the end of June rose 4.35% from May to 1.83 million metric tons, the highest since February, the Malaysian Palm Oil Board (MPOB) said on Wednesday.

The MPOB attributed the rise in stocks to a steeper decline in exports compared with production. Crude palm oil production declined 5.23% from May to 1.62 million tons, while palm oil exports plunged 12.82% to 1.21 million tons.

A Reuters survey had forecast inventories at 1.83 million tons, with output at 1.62 million tons and exports at 1.24 million tons. India’s palm oil imports in June rose to hit the highest level in six months on robust demand from refiners for upcoming festivals. Crude palm oil prices are expected to remain supported by tighter production conditions and strong demand from top buyers India and China, state agency Malaysian Palm Oil Council (MPOC) said.