Malaysian crude palm oil futures fell 1.9 percent on Monday as players took profit after strong gains last week that pushed the market to eight-year highs. Traders said the market awaited April exports, stocks and output numbers to be unveiled by the state-run Malaysian Palm Oil Board on Thursday.
The benchmark third-month July contract on the Bursar Malaysia Derivatives Exchange finished down 43 ringgit, or 1.9 percent, at 2,245 ringgit ($658) a tonne. "It is more like profit taking as everyone is waiting for the numbers," said a dealer. "The market is likely to trade at a lower level until we get to know what is happening to exports this month and what production in April was."
Cargo surveyors will also announce May 1-10 export numbers on Thursday. The market has gained around 14 percent this year after surging 40 percent in 2006 on the back of demand from the bodiless and food sectors.
The most-active months rose 3.8 percent on Thursday after top industry analyst Drab Mistry gave bullish forecasts for palm oil prices. Malaysian palm oil prices will soon reach 2,400 ringgit a tonne and may cross 2,500 ringgit, said Mistry, a director at Gaudier International Ltd. Other traded contracts fell between 11 and 39 ringlet. Overall volume stood at 8,204 lots of 25 tonnes each.
Exports of Malaysian palm oil products in April rose 15 percent to 1,139,535 tonnes from 991,550 tonnes shipped in March, according to cargo surveyor Interlake Testing Services.
Another surveyor, Society General de Surveillance said exports during the period rose 13.3 percent to 1,131,100 tonnes from 998,759 tonnes shipped in March. In the physical market, crude palm oil for May shipment in the southern region was quoted at 2,380/2,390 ringgit a tonne. Deals were done at 2,390 ringlet a tonne.
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