Palm Oil Suffers Reversal on Outlook for Higher Malaysian Output

Palm oil futures in Malaysia reversed earlier gains to a record to close lower for the first time in four days, depressed by prospects of increased production this month in second-biggest grower Malaysia.

Expectations are now for output to be 3% to 4% higher in October from a month earlier, said Marcello Cultrera, an institutional sales manager and broker at Phillip Futures in Kuala Lumpur. Meanwhile, demand is running 10%-14% lower than in September, and the biggest importers such as India and China are fully covered for November and partially for December, he said.