KUALA LUMPUR, Sept 28: Malaysian crude palm oil futures closed down 1 per cent on Wednesday after profit-takers emerged in a market that had risen 2 straight days on speculation over September exports.
The benchmark third-month December contract on Bursa Malaysia Derivatives ended 16 ringgit down at US$382.59 a ton.
It had risen 30 ringgit through Monday and Tuesday, breaking the psychological resistance of 1,450.
Quite a number of us were doubting the momentum would hold up and were expecting the market to go back below 1,450, said a trader. Looks like that’s been proven.
Dealers also cited weakness in rival US soyaoil as one reason why the market could not be supported at its highs.
The market was presented with evidence of strong exports for the first time on Monday when Societe Generale de Surveillance (SGS), the main tracker of palm oil shipments watched by the market, estimated a 12.4 per cent rise in Sept. 1 to 25 from Aug. 1 to 25.
Other futures contracts ended down 13 to 15 ringgit.
Volume totalled 5,548 lots of 25 tons each. The market typically sees 6,000 lots or more on an active day.
Prices of physical crude palm oil were down too. September/ October saw offers at 1,450 ringgit a ton and bids at 1,445 in the southern and central regions of Malaysia.
Trades were reported at 1,452.50-1,450 ringgit. —Reuters
