KUALA LUMPUR: Malaysian palm oil futures fell to a one-week closing low on Thursday as prospects of rising inventories outweighed support from a weaker ringgit.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange slipped 57 ringgit, or 1.72%, to 3,263 ringgit ($706.74) a tonne, its lowest closing since May 31.

The contract is tracking profit-taking in Chicago soyoil futures from Wednesday’s high and rising palm oil supply in both Malaysia and Indonesia, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

Expectations of wet weather in parts of the US Midwest are weighing on soybean and soyoil prices, he added.

Earlier this week, the Malaysian Palm Oil Association forecast May production to jump 26.3% from the month before, according to traders and analysts.