Palm oil ends lower as Aug inventories rise

NEW DELHI, Sept 10 (Reuters): Malaysian palm oil futures ended lower on Tuesday after industry data showed inventories in the world's second-largest producer rose more than expected last month.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed down 12 ringgit, or 0.31 per cent, at 3,883 ringgit ($894.70) a metric ton.
Malaysia's palm oil stocks at the end of August rose 7.34 per cent from the previous month to 1.88 million metric tons, the highest level in six months, the Malaysian Palm Oil Board (MPOB) said.
Crude palm oil production gained 2.87 per cent to 1.89 million tons, while palm oil exports fell 9.74 per cent to 1.53 million tons, the board said.
A Reuters survey had forecast inventories at 1.86 million tons, with output seen at 1.89 million tons and exports at 1.5 million tons.
Palm oil may retest support at 3,856 ringgit per ton, a break below which could trigger a fall to 3,833 ringgit, Reuters technical analyst Wang Tao said.