JAKARTA, March 4: Malaysian crude palm oil futures hit a record high on Tuesday but prices later tumbled following talk that China could intervene to curb rising prices.
Indonesia palm oil prices firmed on Tuesday supported by tight supply, but some players held back because of volatility in the Malaysian market.
Producers in North Sumatra’s Medan sold crude palm oil at between 10,730-10,980 rupiah ($1.18-$1.21) a kilogram, up from 10,260-10,294 rupiah a kilo last week.
Producers in Medan, Indonesia’s key port for palm oil export, did not hold auctions on Friday or Monday.
Malaysia gained in morning trade which supported local prices. Also, palm oil is showing a seasonal decline in production, so supply will tighten in coming weeks, said a dealer at a palm oil plantation in Medan.
The state marketing centre failed to sell 4,500 tons of crude palm oil at an auction on Tuesday as high prices scared away buyers.
The benchmark May contract on the Bursa Malaysia Exchange ended down 231 ringgit at 4,099 ringgit ($1,287) a ton after hitting a record high of 4,486 ringgit.
Tight supply also pushed the price of refined, bleached, deodorised (RBD) palm olein, used as cooking oil, to around 12,500-13,000 rupiah a kilo, from about 12,000 rupiah a kilo.—Reuters
