KUALA LUMPUR, Jan 4: Malaysian crude palm oil futures edged lower on Friday as investors booked profits from a rally that pushed prices to record highs -- raising concerns about export growth, traders said.

But prices for palm oil, used in goods ranging from suntan lotion and chocolates to biofuel are widely expected to stay high as production takes a hit from monsoon flooding last month.

The benchmark March contract on the Bursa Malaysia Derivatives Exchange slipped 15 ringgit to 3,120 ringgit ($951).

On the previous day, the contract notched an all-time high of 3,159 ringgit.

Other traded months fell between 4 and 17 ringgit.

Overall trade stood at 10,819 lots of 25 tons each.

But other traders said exports will continue to climb as China, the world’s largest edible oil buyer, locks in supplies for the Chinese New Year festivities in early February.

China is a huge impact for exports but the question is, will there be enough palm oil with production on the downside, said a dealer with a local commodities trading firm.

Exports jumped in December with cargo surveyors Intertek Testing Services reporting 10.8 per cent increase to 1.43 million tons while Societe Generale de Surveillance announced a rise of 13.9 per cent to 1.4 million tons.

China accounts for more than 20 per cent of total exports.

Vegetable oils, such as palm and soybean oil, often track crude oil prices because of growing use of edible oils in the making of biofuels, which compete with petroleum.

Output in Malaysia probably dropped 18.2 per cent to 1.35 million tons in December from a month ago, according to the median estimate of five plantation houses.

In the physical market, crude palm oil for January shipment in the southern region was quoted at 3,130/3,140 ringgit a ton. Trades were quoted at 3,140 ringgit by the close.—Reuters