06/09/04 KUALA LUMPUR (Dow Jones)--Private surveyor Palmis ManagementBhd. Monday estimated Malaysia's August crude palm oil output at 1.31million metric tons, up from the 1.27 million tons produced in July,traders familiar with the latest Palmis report said.According to traders who obtained the data, Palmis estimated Augustpalm oil exports at 1.20 million tons, up from 1.11 million tons in July.Palmis pegged end-August stocks at 1.305 million tons, up slightlyfrom 1.27 million tons at end-July, traders said.Palmis is the only private palm oil crop forecaster in Malaysia, andits production, export and stock forecasts are closely watched by themarket.Traders said the figures were considered friendly, as the rise instocks in August wasn't as large as feared."There's quite a big drop in the stocks number compared to (Palmis')previous report," a trader said.In its previous report, Palmis had estimated end-August stocks around1.37 million to 1.38 million tons, traders said.Traders said the large reduction in stocks is likely to boostsentiment and lift palm oil prices in the afternoon session.The benchmark November CPO contract ended the morning session at 1,495ringgit ($1=MYR3.8) a metric ton, up MYR4 from Friday.They said the benchmark contract is likely to end the day above theMYR1,500 psychological level.Official August supply and demand figures are due to be issued by theMalaysian Palm Oil Board Sept. 13.The decline in Palmis' stocks forecast was mainly due to strongexports in August, traders said.Last week, cargo surveyors Intertek Testing Services and SGS(Malaysia) Bhd had also reported August Malaysian palm oil exports around1.2 million tons.