KUALA LUMPUR: Malaysian palm oil futures reversed gains made in the previous session, pushed lower by expectations of rising output that would contribute towards greater stockpiles at end-July.

Benchmark palm oil futures for October delivery on the Bursa Malaysia Derivatives Exchange fell 0.8 per cent to 2,300 ringgit ($568) per tonne at the close of trade, the first decline after two sessions of gains.

Traded volumes stood at 35,537 lots of 25 tonnes each in the evening, versus the 2015 average of 44,600.

“The market still lacks direction, but people think production may be picking up,” said a Kuala Lumpur-based trader. “Output in East Malaysia is up for the month of July.”

Published in Dawn, July 29th, 2016