04.10.2018 (The Edge Markets MY) - KUALA LUMPUR (Oct 4): Inventories est. +0.4% m/m and +24% y/y to ~2.5m tons at end of September amid rising production, CIMB regional head of agribusiness Ivy Ng says in Oct 3 report.

* The flat stockpiles for September and rising crude oil prices are supportive for crude palm oil prices in the near term, Ng says.

** CPO seen trading in 2,100-2,400 ringgit/ton range in October.

* CPO output est. +15% m/m, +4% y/y to 1.86m tons in September, according to survey of 21 plantation areas by CIMB Futures.

** Compares with avg. increase of 2% m/m in September over past 10 years.

** Higher-than-historical avg rise is due to lower base in August, which was lowest monthly output for the month since 2010.

*** Planters attributed this to a shift in cropping patterns: Ng.

** Sarawak estates posted the highest m/m production increase, followed by Sabah; Peninsular Malaysia reported smallest rise.

 * Exports est. +50% m/m to 1.65m tons; +9% y/y.

** Traders deferred purchases on expectations of zero export tax in September.

* CIMB maintains neutral rating on sector.