Crude palm oil futures in Malaysia seen weaker on inventory forecast

Crude oil prices in Malaysia are set to head lower on Thursday as expected higher production last month outweighs a gain in exports.

Bursa Malaysia front-month palm oil futures for November fell 0.3 percent to 2,291 ringgit (US$552.58) a metric ton on Wednesday, hitting a two-month high of 2,303 ringgit intraday.

Monthly data from the the Malaysian Palm Oil Board ‪due September 12 is expected to show Malaysia’s August palm oil stocks up 9 percent on-month to 2.41 million metric tons, a Reuters survey said, the highest since February, while production likely rose 9.9 percent to 1.65 million metric tons, the highest this year.

The Reuters survey said Malaysian exports for August are seen at 1.23 million metric tons, a 2.3 percent increase from last month and the highest in three months.

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