Malaysian crude palm oil futures fell for a third day on Tuesday, on signs of a wider correction in the market that traders say went up too high last month, although losses were curbed ahead of a key price outlook meeting in Kuala Lumpur.
Prices rose more than six percent in February alone, setting the stage for upbeat price outlooks at the Bursa Malaysia conference, although some traders said still high stocks and an uncertain global economic outlook did not justify the gains. "The palm oil market is overbought and there should be a greater correction coming in," a trader with a foreign commodities brokerage said at the sidelines of the conference.
Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange ended 0.1 percent lower at 3,242 ringgit ($1,072) per tonne. Traded volumes were thin, at 12,476 lots of 25 tonnes each, compared to the usual 25,000 lots, as most dealers were attending the palm oil conference.
Technicals appeared to be negative as Reuters analyst Wang Tao said palm oil futures will fall to 3,197 ringgit per tonne, as indicated by their wave pattern and a Fibonacci projection analysis. The most active September 2012 soyoil contract on China's Dalian Commodity exchange fell 0.5 percent.
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