* Crude palm oil dropped tracking weakness in spot demand and overseas prices amid higher domestic stocks.
* Palm oil end-July stockpiles is expected to rise 7 percent to 2.34 million tonnes, while production was seen up 15.9 percent to 1.54 million tonnes.
* Malaysian palm oil prices are set to average 2,410 ringgit ($591) a tonne in 2018, the Malaysian Palm Oil Council (MPOC) forecasted.
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