11/10/06 (The Edge News)  - Malaysia's crude palm oil output rose 4.73% in September from the previous month to 1,609,939 tonnes, the Malaysian Palm Oil Board said on Oct 11.

Production in the world's largest producer stood at 1,431,654 tonnes in September 2005.

Stocks of palm oil rose 6.84% at end-September to hit a record 1,799,200 tonnes, from end-August, the board said.

Stocks at the end of September 2005 were 1,436,435 tonnes.

"Stocks have reached an all-time high and this is going to hit the market," said a trader in Kuala Lumpur.

"There were rumours earlier in the day that production will be unchanged and stocks will not go very high, but it has happened the other way round. It will bring down the market in the afternoon session," he added.

By the midday break, the benchmark third-month December crude palm oil futures contract on the Bursa Malaysia Derivatives exchange was down RM5 at RM1,553 a tonne, off a morning low of RM1,544.

Palm oil exports for September totalled 1,294,635 tonnes, down 1.31% from August, MPOB said in a statement.

Exports in September 2005 stood at 1,197,024 tonnes. -- Reuters