SINGAPORE, Sept 9: Malaysian palm oil futures fell on Monday, as investor caution set in ahead of key industry data that could show end-stocks creeping higher in the world’s No.2 producer.

Industry regulator the Malaysian Palm Oil Board (MPOB) is due to release August stocks data on Tuesday, which may show an increase to 1.73 million tonnes, the highest level in three months as output outweighed exports, a Reuters survey showed. Cargo surveyors Intertek Testing Services and Societe Generale de Surveillance are also reporting Malaysian Sept 1-10 exports data on Tuesday.

“The market should be quite range-bound today, with traders positioning ahead of MPOB and exports data tomorrow. Stocks are likely to be flat or higher and hopefully exports for the first 10 days are stronger,” said a trader with a foreign commodities brokerage in Kuala Lumpur. The benchmark November contract on the Bursa Malaysia Derivatives Exchange lost 1.7 per cent to close at 2,402 ringgit ($730) per tonne, after trading in a range of 2,397 to 2,449 ringgit. Total traded volume stood at 29,350 lots of 25 tonnes each, lower than the average 35,000 lots.

Technicals showed palm oil is expected to drop to 2,385 ringgit per tonne, driven by a wave analysis, according to Reuters market analyst Wang Tao.

Traders are expecting higher overseas demand for palm oil in August to continue into September as key buyer China restocks ahead of the Mid-Autumn festival later this month. —Reuters