By Emily Chow
The ringgit rose to its strongest levels against the dollar in two weeks on Tuesday, and was up 0.1 percent at 4.0200 per dollar at 1040 GMT. A stronger ringgit, palm's traded currency, makes the edible oil more expensive for foreign buyers.
It earlier fell as much as 1.5 percent to 2,234 ringgit, its lowest since July 15, 2016.
Trading volumes stood at 63,851 lots of 25 tonnes each on Tuesday evening.
"As better production is expected, slow exports due to low pricing are causing importers to buy on 'need only basis', there is no rush to buy."
June production fell 12.6 percent to 1.33 million tonnes versus the previous month, according to data from industry regulator the Malaysian Palm Oil Board (MPOB) on Tuesday. Output is expected to rise in July and throughout the third quarter of the year, in line with seasonal trends.
The MPOB data also showed end-stocks in June rose 0.8 percent from the previous month to 2.19 million tonnes, while exports declined 12.6 percent to 1.13 million tonnes.
The Dalian September palm oil contract was also down 2.4 percent.
Palm oil prices track the performance of other edible oils as they compete for a share in the global vegetable oils market.
(Reporting by Emily Chow; Editing by Richard Pullin and Mark Potter)
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