KUALA LUMPUR: Malaysian palm oil futures edged lower on Wed­nesday after touching an eight-month high, as market players responded to mixed outlooks from leading analysts at a key industry meeting.

“The market is on a correction phase after a massive rally from 2,216 to 2,400 in seven trading sessions,” said a trader with a foreign commodities brokerage in Kuala Lumpur.

The benchmark March contract slipped 0.59 per cent to 2,364 ringgit ($649) after touching 2,400, its highest level since July 2014. Traded volume stood at 33,241 lots of 25 tonnes each, below the usual 35,000 lots.

“There was some early euphoria, but fundamentals reign supreme and the upside is being capped by subdued demand,” said a trader with a local commodities brokerage in Malaysia.

Leading industry analyst James Fry said at the Palm and Lauric Oils Price Outlook Conference & Exhibition (POC) on Wednesday that Malaysian crude palm oil prices will average 2,260 ringgit a tonne in the first half of 2015.

Palm is expected to test resistance at 2,408 ringgit per tonne, a break above that level would open the way towards 2,467 ringgit, Reuters market analyst Wang Tao said.

Published in Dawn, March 5th, 2015

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