KUALA LUMPUR, July 4: Malaysian crude palm oil futures slipped 1.4 per cent on Wednesday as prices of rival soya bean oil declined and traders booked profits a day after the market surged on hopes of strong overseas buying.

The benchmark September contract on the Bursa Malaysia Derivatives Exchange finished down 36 ringgit, or 1.4 per cent at 2,479 ringgit ($720) a ton.

Losses in soya bean oil overnight have translated to losses in the palm oil market and players are also taking profits on yesterday's gains. Other traded months fell between 9 and 43 ringgit in overall trade of 8,874 lots of 25 tons each.

Industry officials say palm oil demand is expected to pick up from July as nations from South Asia to the Middle East lock in supplies for the Muslim holy month of Ramazan which is due in September.

The product is more than 10 per cent off a historic high of 2,764 ringgit reached in June on robust demand from India and China and dwindling reserves at home. The July contract deepened losses by more than 1 pc at 36.36 cents per lb in electronic trading during Asian hours on Wednesday.

Soya oil usually lends support to the palm oil market due to common use in products ranging from lipstick to confectioneries and biofuels.

September palm oil on Singapore’s Joint Asian Derivatives Exchange fell 1.5 per cent to $719.25.

In Malaysia’s physical market, crude palm oil for July shipment in the southern region was quoted at 2,615/2,625 ringgit a ton. Trades were done between 2,610 and 2,620 ringgit.—Reuters