KUALA LUMPUR: IOI Corp Bhd has warned that the price of palm oil could turn weaker later this year from current strong level on rising output and slower exports.

Palm oil prices have increased significantly from around RM2,100 a tonne in May to above RM2,700 per tonne in August after stockpile fell to a three-year low in July.

"Oil palm crop production is likely to increase gradually from September to November this year while the demand is expected to taper off from the high restocking activity in the major importing countries, while supported by festive demand during the Chinese Full Moon Festival and the Diwali celebration in November," it said.

"As a result, palm oil price may decline slightly during the fourth quarter of this year from its current strong level," the planter said today.

IOI Corp Bhd posted a net profit of RM238mil in the last quarter in its fiscal year ended June 30 (FY20), boosted by higher crude palm oil and palm kernel selling prices.

For the full year, the company made a net profit of RM600mil, or 9.57 sen a share.

The company has declared a second interim dividend of 4 sen a share, to bring its full year payout to 8 sen a share.