KUALA LUMPUR: Malaysian palm oil futures ended a volatile session more than 1% lower on Monday, dragged down by estimates for rising output and a survey that predicted August inventories rose for the first time since May.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed down 33 ringgit, or 1.16%, at 2,802 ringgit ($674.37), having gained as much as 0.71% earlier.

The Malaysian Palm Oil Association estimated production in August to have increased 3.79% from July to 1.87 million tonnes, a Kuala Lumpur-based trader said. This was higher than a Reuters' survey showing 1.84 million tonnes.

"This could pressure palm oil prices as inventories are expected to climb above 1.8 million tonnes at the end of August," said Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil broker.

Data from cargo surveyor Intertek Testing Services showing palm oil exports during the first five days of September rose 33% from a month earlier supported prices, he added.

A Reuters' survey pegged palm oil stockpile in the world's second-largest producer at end-August to rise 5.4% from July to 1.79 million tonnes.

The market is now awaiting August supply and demand data from the Malaysian Palm Oil Board on Sept. 10.

Dalian's most-active soyaoil contract rose 0.24%, while its palm oil contract fell 0.95%. The Chicago Board of Trade was closed for the Labour Day holiday.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.