JAKARTA, Sept 5: Malaysian crude palm oil futures fell by more than 1 per cent on Friday on weak soy and crude oil prices, and concerns about high stocks, dealers said.

Worries about a build-up of supplies and news of defaults from key buyers India and China have pushed down prices of palm oil by 19.02 per cent so far this year. Palm oil is used to make products ranging from soap to biodiesel.

The benchmark November crude palm oil contract on the Bursa Malaysia Derivatives Exchange were down 40 ringgit, or 1.59 per cent, to 2,470 ringgit ($714) per ton, after going as low as 2,414 ringgit per ton.

Weakness in crude oil and in physical markets continued to attract speculative selling, on the back of waning demand and ample nearby supplies, said a leading trader in Kuala Lumpur.

The prevailing mood in the market is still cautious, the trader said, adding that the market will trade in a narrow range of 2,400-2,550 ringgit per ton.

Contracts for other traded months dropped between 25 ringgit and 96 ringgit. Overall volumes stood at 15,838 lots of 25 tons each.

Oil prices fell more than $1 on Friday as flagging US demand and the stronger dollar extended crude’s losses to 8 per cent this week.

Players are waiting for fresh leads from data on exports, production and stocks, which will be released next week, dealers said.

The Malaysian Palm Oil Board will release production, stocks and export data next week, while cargo surveyors Intertek Testing Service and Societe Generale de Surveillance will also release export figures for the first 10 days in September.

Malaysia’s new dollar-based crude palm oil futures debuted in light trade on Friday amid a sell-off in vegetable oil markets pressured by weaker oil prices.

The state marketing centre in Jakarta did not hold a palm oil auction on Friday due to shorter working hours for the Muslim fasting month of Ramazan.

But in Jakarta, refined, bleached, deodorised (RBD) palm olein -- used in cooking oil -- stood at 6,950 rupiah per kg, down from 7,000-7,150 rupiah per kg the previous day.

In the physical market, crude palm oil for September delivery was at 2,450/2500 ringgit a ton in the southern region. No trades were done.—Reuters