JAKARTA, Aug 8: Malaysian crude palm oil futures tumbled more than 2 per cent on Friday as faltering crude oil dimmed prospects for vegetable oil-based biofuels, heightening concerns about slowing demand, dealers said.

Prices of palm oil — used in products from soap to margarine and biodiesel — have plummeted 38 per cent from an all time high of 4,486 ringgit a ton in early March as weak crude oil spurred profit-taking in agricutural markets and global vegetable oil supplies increased.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange ended 66 ringgit down, or 2.32 per cent, at 2,779 ringgit ($842) a ton on Friday.

Losses in crude oil and soyaoil are two great contributors for the market to go further down, said a dealer in a local brokerage.

Contracts for other traded months ended down between 14 to 71 ringgit. Overall volume, stood at 10,681 lots of 25 tons.

On the physical side, everybody is a bit cautious. We don’t see much selling interest. Players want to see what happens on Monday, the dealer said.

The Malaysian Palm Oil Board is due to release July’s palm oil stocks, exports and production data on Monday.

Malaysia’s July palm oil stocks are expected to slip 2.2 per cent from record levels a month ago as surging overseas sales outweigh a slight increase in production, a Reuters poll showed on Thursday.

Indonesian palm oil prices rose on Friday, supported by a weakening rupiah currency against the US dollar, dealers said In Jakarta, the state marketing centre sold crude palm oil at 7,265 rupiah ($0.793) a kg, up from 7,265 rupiah a kg on Thursday.

Palm oil producers in North Sumatra’s Medan -- home to Belawan port, which is the key port for palm oil exports -- sold crude palm oil at 7,137 rupiah a kg. Pices firmed to 7,025-7,160 rupiah a kg on Thursday.

Refiners in Jakarta sold RBD palm olein, used as cooking oil, at 7,700-7,750 rupiah a kg, up from 7,550 rupiah a kg on Thursday.

In Malaysia’s physical market, August crude palm oil was offered at 2,800/2,820 ringgit in the southern region. Trades were done between 2,820-2,850 ringgit a ton.—Reuters