Crude palm oil futures in Malaysia seen weaker on analyst views

Singapore waterfront scene in 1968; photo taken by Leonard Shaffer.

Palm oil futures on the Bursa Malaysia Derivatives exchange are expected to edge down in trade on Thursday on a series of bearish forecasts.

Bursa Malaysia front-month palm oil futures for November eased 0.7 percent to 2,217 ringgit ($540.07) a metric ton on volumes of 33,732 lots of 25 metric tons each.

Noted palm oil analyst Dorab Mistry added to downbeat views with a forecast of lower prices, according to Reuters, adding to other bearish views.

Malaysian palm oil futures need to fall to 2,100 ringgit a metric tons to regain competitiveness, Mistry said at an industry event in Kuala Lumpur, while analyst James Fry forecast that Malaysian palm oil prices should trade around 2,200 ringgit a a metric ton until December.

Analyst Thomas Mielke forecast on Tuesday that palm oil futures will likely rise to not more than 2,500 ringgit per metric ton in the next six months, while the lower limit was at 2,100 ringgit.

The market is looking ahead to monthly production and export reports and estimates in the coming days.

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