KUALA LUMPUR: Malaysian palm oil futures failed to hold on to earlier gains and inched down on Tuesday as worries of plentiful supplies of rival edible oils alongside rising palm oil production continued to pressure prices.

Sluggish demand for the tropical oil also added to market jitters, weighing on benchmark prices which recorded losses in nine out of 10 sessions.

Cargo surveyor data on Monday showed that exports of Malaysian palm products fell between 11 per cent and 15pc during the Aug. 1-25 period compared with a month ago, due to smaller imports from China and Europe.

Market players said the current weakness in prices have turned investors cautious, but bargain hunters will likely rush in to book purchases once prices begin to bottom out.

On Monday, the benchmark contract fell to a March 2009 low of 1,954 ringgit, but was lifted by short-covering to close higher at 2,030 ringgit.

Published in Dawn, August 27th, 2014