27/06/2011 (Economic Times) - Malaysian palm oil dropped to a seven-month low on Friday as expectations that a higher output cycle will lift stocks offset broad gains in agriculture markets.

Palm oil is on course for a drop of more than 8% in June, its worst monthly performance since February on sluggish commodity markets as well as high stocks outpacing export demand.

"We are looking for better export data next week to give some support but it will not be much," said a trader with a foreign commodities brokerage.