Crude palm oil prices in Malaysia are expected to dip on Monday on higher supplies.
Bursa Malaysia front-month palm oil futures for November eased 0.5 percent to 2,266 ringgit (US$546.88) a metric ton on volumes of 29,852 lots of 25 metric tons each.
Analysts see Malaysia palm oil inventories up at the end of August for a third month to the highest since February ahead of official data on Sept. 12, according to a Reuters poll.
August end-stocks are forecast up to 2.41 million metric tons, a 9 percent increase from the previous month and its biggest monthly gains since November 2017. Production also likely jumped by 9.9 percent from July to 1.65 million metric tons, its highest levels so far this year.
The market is also watching demand from China where the Trump administration is gearing up to impose tariffs on US$200 billion in Chinese goods. The U.S. and China have already applied tariffs to US$50 billion of each other’s goods.