KUALA LUMPUR: Malaysian palm oil futures fell on Friday, tracking weaker rival oils, while traders also locked in profit after the contract rose to an all-time high on concerns of labour shortage.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange lost 71 ringgit, or 1.38%, to 5,090 ringgit ($1,218.14) a tonne at the midday break. It also lost 0.7% overnight, but looked set for a weekly gain.
The market is on a profit-taking mode after Thursday's rally, and tracking Dalian and soyoil weakness, a Kuala Lumpur-based trader said.
India's 2022 palm oil imports to fall, but soy, sunflower oil seen up
Dalian's most-active soyoil contract dropped 1%, while its palm oil contract slipped 0.7%. Soyoil prices on the Chicago Board of Trade were down 1.3%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Other news on India imports and palm biofuels could also weigh on sentiment in the coming sessions, the trader added.
India's edible oil imports in 2022 are expected to fall by 2% as the country boosts domestic production, with palm oil seen taking the biggest hit while soy and sunflower oil imports rise, the Malaysian Palm Oil Council (MPOC) said on Thursday at an industry conference.
At the same conference, the Malaysian Biodiesel Association urged industry officials to come to terms with a steady decline of imports of palm-based biofuels in the European Union following its decarbonisation agenda, with the Malaysia's exports in 2022 seen at their lowest level in five years.
Palm oil may test a support at 5,094 ringgit per tonne, and a break below could open the way to 5,001 ringgit, Reuters technical analyst Wang Tao said.
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