KUALA LUMPUR, May 30: Malaysian crude palm futures closed 1.5 per cent lower on Wednesday as players booked profit a day after the market hit record highs and prices of rival soybean oil tumbled.
Traders said the market awaited May export data to be released by cargo surveyors on Thursday.
The benchmark August contract finished down 38 ringgit, or 1.5 per cent, at 2,500 ringgit ($736) a ton after touching a session low of 2,466 ringgit.
The market might cover losses as the export data tomorrow is expected to be firm even though it might have tapered off due to the high prices, said another trader.
Traders said exports in May could range between 1 million and 1.1 million tons.
Malaysian palm oil usually tracks the US soyaoil market because both commodities are used in products ranging from breads to lipstick and biodiesel.
Palm oil has gained more than 25 per cent this year on dwindling supplies at home and robust demand from top importers India and China. It surged 40 per cent last year on the back of demand from the food and biodiesel sectors.
On Tuesday Pakistan said it was considering a cut of up to 20 per cent in import duty on Malaysian palm oil over three years. Estimated world palm oil output of 37.98 million tons in 2006/07 (Oct-Sept) will be below likely consumption of 38.48 million, Hamburg-based oilseeds analysts Oil World said.
In the season 2006/07, the palm oil supply cycle is changing towards a deficit of production by about 0.5 million tons relative to consumption, it said.
Crude palm oil prices in Rotterdam and Hamburg had reached $822.50 a ton for nearby delivery at midday on Tuesday, up by $220 since the beginning of January.
In the physical market, crude palm oil for June shipment in the southern region was quoted at 2,650/2,680 ringgit a ton.
