Palm oil ends lower as August inventories rise more than expected in Malaysia

Malaysian palm oil futures ended lower on Tuesday after industry data showed inventories in the world’s second-largest producer rose more than expected last month. The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange closed down 12 ringgit, or 0.31%, at 3,883 ringgit ($894.70) a metric ton. Malaysia’s palm oil stocks at the end of August rose 7.34% from the previous month to 1.88 million metric tons, the highest level in six months, the Malaysian Palm Oil Board (MPOB) said. Crude palm oil production gained 2.87% to 1.89 million tons, while palm oil exports fell 9.74% to 1.53 million tons, the board said. Palm oil may retest support at 3,856 ringgit per ton, a break below which could trigger a fall to 3,833 ringgit. Oil prices gave up the previous day’s gains on Tuesday as weak Chinese demand offset U.S. supply disruptions from Tropical Storm Francine and global oil oversupply risks that continue to weigh on the market. Weaker ...