KUALA LUMPUR, Feb 28: Malaysian palm oil futures fell on Thursday as investors took profits after U.S. soy mostly declined in Asian trading from record highs.

The benchmark May contract on the Bursa Malaysia Derivatives Exchange settled down 14 ringgit at 3,850 ringgit ($1,203) a tone, just a whisker from a record 3,914 ringgit hit on Monday.

Market participants who attended the Bursa Malaysia’s annual palm oil conference this week received mixed signals on prices, and were taking stock.

Dealers have just returned from that price outlook conference with very conflicting opinions but the fundamentals seem to point to a rise ... stocks may be rising but demand is going great guns too, said the trader.

Other traded months fell between 5 and 21 ringgit.

Overall volume stood at 8,911 lots at 25 tons each.

Palm oil demand from China, Pakistan, India and the Middle East were all talked about at the conference.

Speaking at the conference, leading analyst Dorab Mistry saw longer-term gains for palm oil, albeit at a slowing pace, but his peers were more downcast, citing the uncompetitiveness of biofuels as petroleum crude oil prices lag palm oil’s 26 per cent gain this year.

Wilmar International, the world’s largest listed palm oil trader, viewed record palm oil prices as worrying despite reporting a five-fold jump in fourth quarter net profit.

Chairman and Chief Executive Kuok Khoon Hong said while plantations and refining businesses were benefiting, high palm oil prices have started to slow down consumption growth.

Kuok added that Wilmar was trying to sell forward most of its production to lock in higher profits, but was careful to deal only with parties strong enough to honour the contract, even if the market turns against them.

In Malaysia’s physical market, crude palm oil for February shipment in the southern region was quoted at 3,835/3,845 ringgit a ton. Trades were done at 3,830 ringgit and 3,840 ringgit.

—Reuters