KUALA LUMPUR: Malaysian palm oil futures eased on Tuesday, ending two straight sessions of gains on slow export shipments and industry estimates of an increase in August output. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed down 16 ringgit, or 0.37%, to 4,300 ringgit ($1,017.27) a tonne.
Prices came off on long liquidation as Dalian prices rose sharply on Monday, a Kuala Lumpur-based trader said.
"Higher production expectations for August also weighed on (the market) and more selling could emerge if exports don't recover," the trader said.
The Southern Peninsula Palm Oil Millers' Association forecast an 11.5% month-on-month rise in Aug. 1-20 production, traders said on Monday.
Malaysia's exports during Aug. 1-20 fell 9.9% from the same period in July, cargo surveyor Societe Generale de Surveillance said on Monday.
Investors are expecting August 1-25 shipments, which are expected to be announced on Wednesday, to remain low.
The ringgit, palm's currency of trade, fell 0.07% against the dollar, making the commodity cheaper for holders of foreign currency.
Dalian's most-active soyoil contract rose 1.2%, while its palm oil contract gained 1.9%. Soyoil prices on the Chicago Board of Trade were up 0.9%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Refinitiv Agriculture Research said in a note on Monday that the contract might rise towards resistance at 4,360-4,380 ringgit a tonne this week, with support at 4,050-4,070 ringgit a tonne, rebounding from last week's sharp loss on bargain-buying.
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