KUALA LUMPUR, May 7: Malaysian crude palm oil futures fell 1.9 per cent on Monday as players took profit after strong gains last week that pushed the market to eight-year highs.
Traders said the market awaited April exports, stocks and output numbers to be unveiled by the state-run Malaysian Palm Oil Board on Thursday.
The benchmark third-month July contract on the Bursa Malaysia Derivatives Exchange finished down 43 ringgit, or 1.9 per cent, at 2,245 ringgit ($658) a ton.
It is more like profit taking as everyone is waiting for the numbers, said a dealer. The market is likely to trade at a lower level until we get to know what is happening to exports this month and what production in April was. Cargo surveyors will also announce May 1-10 export numbers on Thursday.
The market has gained around 14 per cent this year after surging 40 per cent in 2006 on the back of demand from the biodiesel and food sectors.
Malaysian palm oil prices will soon reach 2,400 ringgit a Ton and may cross 2,500 ringgit, said Mistry, a director at Godrej International Ltd. Other traded contracts fell between 11 and 39 ringgit.
Overall volume stood at 8,204 lots of 25 tons each. Exports of Malaysian palm oil products in April rose 15 per cent to 1,139,535 tons from 991,550 tons shipped in March, according to cargo surveyor Intertek Testing Services.
