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Palm slips for third day after survey pegs jump in inventories

Malaysian palm oil futures ticked down on Monday, extending losses for a third consectuive session after a surveyshowed end-August inventories expanding above 2 million tonnes for the first time in over two years.

The benchmark palm oil contract FCPOc3 for November delivery on the Bursa Malaysia Derivatives Exchange fell 3 ringgit, or 0.08%, to 3,912 ringgit ($871.08) a tonne, its lowest closing since Aug. 5.

Selling pressure were seen on expectations of higher production and inventories, a Kuala Lumpur-based trader said.

Malaysia’s palm oil inventories at end-August likely jumped 14.5% to 2.03 million tonnes from the month before, a Reuters survey showed.

Production is seen climbing 8% to 1.7 million tonnes, while exports likely eased 0.14% to 1.32 million tonnes.

The Malaysian Palm Oil Board is scheduled to release August supply and demand data next week.
In key buyer India, the nation’s palm oil imports nearly doubled to an 11-month high in August from a month earlier, as a correction in prices prompted refiners to ramp up purchases, five dealers told Reuters on Monday.

Limiting losses, oil prices jumped more than $2 a barrel ahead of an OPEC+ meeting, making palm a more attractive option for biodiesel feedstock. O/R

Dalian’s most-active soyoil contract DBYcv1 rose 1.9%, while its palm oil contract DCPcv1 gained 0.6%. Soyoil prices BOc3 on the Chicago Board of Trade, which is closed for a public holiday, jumped 4% in the previous session.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Source: Reuters (Reporting by Mei Mei Chu; Editing by Rashmi Aich and Maju Samuel)

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