MUMBAI, Sept 15 (Reuters) - Malaysian palm oil futures are likely to fall more than 9 percent from current levels to 2,600 ringgit ($621) a tonne in the fourth quarter with output increasing, leading industry analyst Thomas Mielke said on Friday.
“We are expecting production rising by 7.1 million tonnes in the current year. We expect another 3.7 million tonnes increase next year,” Mielke, executive director of Hamburg-based forecaster Oil World, told the Globoil India conference.
“Supply outlook is very, very positive. That will be bearish for prices in the medium term.”
On Friday, the benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange was trading around 2,866 ringgit a tonne. The contract hit 2,896 ringgit on Thursday, the highest since March 6.
$1 = 4.1880 ringgit Reporting by Rajendra Jadhav; Editing by Manolo Serapio Jr.