SINGAPORE, Oct 8: Malaysian palm oil futures closed down two per cent on Monday as traders braced for rising inventory levels, offseting bargain-hunting seen earlier in the market after steep declines last week to a near three-year low.

A monthly report by the Malaysian Palm Oil Board (MPOB) on Wednesday could show September stock levels hitting a record high, setting a bearish ton for fundamentals. “The market has no specific direction to go yet after falling so much,” said a Singapore-based trader with a global commodities house, referring to prices that fell to near three-year low and posted their third straight weekly loss last week. The benchmark December contract on the Bursa Malaysia Derivatives Exchange lost two per cent to close at 2,368 ringgit per ton, after trading in a range from 2,361 to 2,446 ringgit.—Reuters