Malaysian palm oil futures eased on Monday, touching their lowest in nine months during the session as sentiment remained subdued ahead of data expected to show a drop in exports last month.
Benchmark palm oil futures for September delivery on the Bursa Malaysia Derivatives Exchange closed 0.04% lower at RM2,239 (US$560.73) a tonne, having dropped by about 1% earlier in the day, the lowest level since Oct. 9, 2015.
Traders said the Malaysian Palm Oil Board's (MPOB) data for June, due on Tuesday, is expected to show higher stocks and lower exports.
"The industry expects the end stock to be in the range of 1.75 million to 1.85 million tonnes and if that's the case the market will consolidate above RM2,200," said Lingam Supramaniam, director with Pelindung Bestari at Port Klang Malaysia.
The September contract for soybean oil, a substitute for palm oil, on the Dalian Commodity Exchange rose 1.2%, while the most actively traded September contract for palm olein surged by 1.7%, tracking gains in US soyoil.
China is the world's second-largest palm oil consumer behind India.
US soyoil futures were 0.86% higher.
Higher stockpiles in Malaysia should pressure palm oil prices lower, forecast a Reuters poll of eight traders, analysts and planters.
The survey showed inventories are expected to have risen by 7.4% to 1.77 million tonnes in June, with exports down 6.4% from May.
Output is seen rising for a fourth consecutive month in line with the seasonal trend to reach 1.51 million tonnes.
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