Malaysian palm oil retreats

Malaysian palm futures retreated on Tuesday after rising a day earlier to their highest in nine months amid renewed concerns that price rally could cut demand, despite of the current supply tightness situation, traders said. The benchmark July contract dropped 77 ringgit, or 2.9 percent, to 2,625 ringgit per tonne ($748.29). Overall volume more than doubled the usual at 22,092 lots of 25 tonnes each.
"Actually a lot of people think that demand will slow down in May. Currently at this very moment they do not see a good line up in vessels for May so they reckon that demand is poor in May," said a trader at a Kuala Lumpur-based commodities brokerage. Traders in neighbouring Indonesia, world's top palm producer, also said that buyers have disappeared over the past few days due to sharp price rally.
"Overseas buyers have delayed new purchases on hopes that supply will increase this month," said a trader in Medan, home to the country's main palm oil export port of Belawan. The Malaysian trader said the price retreat of 6 percent from Monday's peak could be an indication that supply tightness, which has been the main factor supporting recent price rally, was easing.
The trader said some investors therefore prefer to wait for Monday's release of Malaysian palm oil stocks at the end of April for clues for price direction. US soyoil for May shipment was down 0.4 percent in Asian trade and the most-active September soyoil contract on Dalian's Commodity Exchange was up 0.6 percent.
INDONESIA PALM TRADES In Indonesia, the world's top producer of palm oil, the Jakarta-based state marketing centre said it sold 5,500 tonnes of crude palm oil at a top price of 8,900 rupiah ($0.855) per kg, against 8,978 rupiah per kg on Monday. Producers in Medan - home to Belawan port, Indonesia's main palm oil export port - sold palm oil at a top price of 8,915 rupiah pre kg. They did not hold palm oil tender on Monday.
Refiners in Jakarta offered refined, bleached, deodorised (RBD) palm oil, used as cooking oil, at 8,900 rupiah per kg, up from 8,800 rupiah per kg a day earlier. In the Malaysian physical market, palm oil for May delivery was sold between 2,770-2,820 ringgit per tonne in the southern and central region, down from 2,850-2,880 ringgit per tonne a day earlier.