KUALA LUMPUR: Malaysian palm oil futures slipped to a near 10-month low on Tuesday, following losses in Chinese soy markets and on worries of bumper soy crops, although anticipation of tighter palm supplies curbed losses.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange fell to 2,272 ringgit per tonne in late trade, their lowest since Sept. 27, before settling at 2,280 ringgit ($718) by the day’s close, a 0.7 per cent drop.

While bearish external factors such as forecasts for an excellent soybean harvest and weakness in comparative soyoil markets continue to weigh on palm, market participants said prices were underpinned by prospects of a palm oil supply squeeze in the coming months.

Published in Dawn, July 23rd , 2014