SINGAPORE, June 14: Malaysian palm oil futures slumped to their lowest in 2012 on Thursday as the euro zone debt crisis and sluggish US growth triggered a flight of capital from riskier assets.

Investors were waiting for fresh trading cues from the results of an Italian debt auction and US jobs data later in the day, as well as Greek polls this weekend that could precipitate the country's exit from the bloc.

Uncertainty about the global economy pushed Asian shares down on Thursday.

Benchmark August palm oil futures on the Bursa Malaysia Derivatives Exchange lost 3.5 per cent to close at 2,846 ringgit ($893) per ton, the lowest level this year. Futures have lost more than 10 per cent this year.

Prices also dropped below the 2,900-ringgit mark for the first time this year. The market hit a low of 2,838 ringgit earlier in the session, a level unseen since Oct 20, 2011.

Traded volumes were high, at 37,755 lots of 25 tons each, compared to the usual 25,000 lots, as investors rushed to liquidate their positions.

Fundamentals were supportive, with Malaysian palm oil stocks hitting a 13-month low in May, a sign that strong demand was eating into stocks.

Malaysian palm oil exports were lacklustre for June 1-10, but traders expect shipments to pick up as India and Pakistan restock ahead of Ramazan. Cargo surveyors will report export numbers for the first half of the month on Friday. Lower soybean ending stocks reported by the US Department of Agriculture on Wednesday also suggested tighter supply and could provide support for palm oil prices.—Reuters