13/08/2014 (Bernama) - Plantation stocks on Bursa Malaysia were mostly traded lower at mid-afternoon Tuesday following the unfavourable outlook projected by analysts.

They said crude palm oil (CPO) stocks in August are likely to increase on the back of production recovery.

Kenanga Research said the long-term CPO price uptrend remains intact due to sustainable demand seen from the sector, despite palm oil exports being affected by demand from China.

In a note, it said the projection of RM2,500 per metric tonne for the 2014-2015 average CPO price, remains unchanged.

"However, ample production of the competing soyabean oil is limiting the upside to CPO prices," it added.

On production, the research firm said it expects the August 2014 inventory to increase by five per cent to 1.77 million metric tonnes, assuming a four per cent production growth, month-on-month.

As at 3.35 pm, the Plantation Index lost 5.76 points to 8,918.72 points.

KLK fell six sen to RM23.74, PPB Group gave up 12 sen for RM14.56, and FGV slipped two sen to RM3.98.

Sime Darby and IOI Corp, however, were flat at RM9.51A and RM5.00 respectively.