KUALA LUMPUR, March 8: Malaysian crude palm oil futures hit 4-week lows on Wednesday, ending down for a seven straight day, as players sought a realistic level for the market.

Palm oil has headed downhill since touching an 11-month high of 1,512 ringgit on Feb. 27.

Dealers said a slough of price-sensitive data due on Friday would decide if the market could return to the 1,470-1,480 ringgit range, which many perceive as fundamentally right.

The jury is still out on what’s the correct price level, said a trader. But one thing’s certain: if we hit 1,500, someone’s going to whack it down.

The benchmark third-month May crude palm oil futures on Bursa Malaysia Derivatives closed down 3 ringgit at 1,469 ringgit ($394.99) a ton — its lowest since Feb. 13.

The May contract has lost 2.8 per cent, or 43 ringgit, since its highs of Feb. 27.

It dipped as low as 1,464 ringgit on Wednesday, against an intraday high of 1,475.

The broader futures market was down 2 to 3 ringgit. Trades totalled 4,213 lots of 25 tons each, against Tuesday’s volume of 5,089 lots. The market typically sees 6,000 lots or more on a busy day.

Cargo surveyors for Malaysian palm oil exports are scheduled to release their estimates for March 1-10 on Friday. Official supply/demand numbers for February are also due the same day.

Dealers have said the market could return briefly to the psychologically-important 1,500 ringgit level if there was any indication of a spike in March exports or a sharp drop in end-February stocks.

Soyaoil futures on the Chicago Board of Trade (CBOT) were also down in Wednesday’s Asian trading hours, extending sharp losses seen on Tuesday.

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

CBOT’s May soyaoil fell 0.48 cent to 24.31 cents per lb in regular Chicago trade on Tuesday. It slipped a further 0.15 cent in Wednesday’s e-CBOT session.

In physical trade of crude palm oil, buyers/sellers for March stood at 1,445/1,450 ringgit a ton in Malaysia’s southern and central regions. Trades declined from 1,450 to 1,440 ringgit.—Reuters