SINGAPORE: Malaysian palm oil futures gave up gains to close 1% lower on Monday as stronger palm production and cheaper rival oils weighed on the prices. The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange closed 46 ringgit at 4,395 ringgit ($1,049.68) a tonne after reaching 4,488 ringgit earlier in the session.

"It is due to higher production in Malaysia," a Kuala Lumpur-based trader told Reuters, citing a report by the Southern Peninsular Palm Oil Millers' Association (SPPOMA). Palm oil production in Malaysia's southern peninsular states had fallen 0.5% in the September 1-25 period, compared with the same period last month, SPPPOMA data showed on Monday.