KUALA LUMPUR, March 3: Malaysian palm oil reversed early gains to close down for a third straight day on Friday as rival soyaoil took fresh losses in Asian trade.

Profit-taking ahead of the weekend also weighed on the market, dealers said.

The benchmark third-month May crude palm oil futures on Bursa Malaysia Derivatives ended down 0.13 per cent, or two ringgit, at 1,488 ringgit ($401.54) a ton, after rising as much 12 ringgit in morning trade.

The contract broke the 1,500-ringgit resistance on Monday, almost a year since the 1,504-ringgit high on March 16,

2005.

Dealers had pegged the market’s next target at 1,520 ringgit, but a softer trend in soyaoil and selling since Monday’s rally had prevented it from getting there.

On Friday, the broader futures market was down 3 ringgit to up 9.

The volume traded totalled 5,114 lots of 25 tons each, a shade higher than Thursday’s 4,973 lots but still below the 6,000 lots or more, common on a busy day.

People are still waiting for the right news to decide the next course of action, a trader in palm oil futures said. I think we’ll hold at around the current level for now.

Dealers said next week would be crucial for the market as cargo surveyors release export estimates for March 1-10 and the government issues official supply/demand data for February — information that usually moves prices.

Soyaoil futures on the Chicago Board of Trade (CBOT) weakened significantly in Friday’s Asian trade after surging a day ago on technical covering by funds.

Soy and palm compete for exports and their prices often move in step.

CBOT’s March soyaoil rose 0.57 cent to 24.37 cents per lb in regular Chicago trade on Thursday, but lost 0.15 cent in Friday’s e-CBOT session, held during Asian hours.

In physical trade of crude palm oil, buyers/sellers for March stood at 1,460/1,465 ringgit a ton in Malaysia’s southern and central regions. Trades closed at 1,462.50-1,455 ringgit.—Reuters