KUALA LUMPUR: Malaysian palm oil futures reversed early gains on Wednesday after trading in a tight range, as traders weighed a forecast for a jump in June inventories against expectation for a recovery in July exports.
The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange slipped 1 ringgit, or 0.03%, to 3,882 ringgit ($835.92) a metric ton by the midday break.
Malaysia’s inventories likely stood at 1.86 million metric tons by the end of June, rising by about 10.5% higher from a month earlier, to stand at a four-month high amid sluggish exports, a Reuters survey showed.
Production in June was forecast to fall 0.8% to 1.51 million tons, while exports likely gained 0.7% to 1.09 million tons, according to the survey.
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