KUALA LUMPUR, Oct 24: Malaysian crude palm oil futures slumped by its daily 10 per cent trading limit on Friday as crude oil posted heavy losses amid fears of a build-up in supplies, traders said.

The benchmark January 2009 contract on the Bursa Malaysia Derivatives Exchange fell 155 ringgit to 1,395 ringgit ($389.9) per ton.

Indonesia’s largest listed plantation firm, PT Astra Agro Lestari Tbk AALI. said it failed to sell 7,250 tons of crude palm oil offered at an auction on Friday due to low bids.

Astra Agro said it offered 1,000 tons of crude palm oil ex-factory Riau at 4,050 rupiah ($0.405) a kg and 750 tons ex-factory Medan at 4,195 rupiah a kg.

Buyers bid at 3,837 rupiah a kg for ex-factory Riau and 3,933 rupiah a kg for ex-factory Medan.

The company offered 2,000 tons at 3,700 rupiah a kgfree on board at Tanjung Bakau, while buyers bid at 3,515 rupiah a kg.

It also offered 2,000 tons free on board Pangkalan Dewa at 3,850 rupiah a kg, but buyers bid 3,400 rupiah a kg.—Reuters