JAKARTA: Malaysian palm oil futures fell from a record high on Monday on profit-taking while buyers monitor export restriction plans from top producer Indonesia.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange closed 1.18% lower at 5,259 ringgit ($1,256.03) per tonne. It erased some of the gains posted over the previous three days.
The contract posted a fifth consecutive weekly gain last week amid lingering output concerns and talks of export control by Indonesia.
Earlier on Monday, the contract scaled an all-time high of 5,380 ringgit.
Palm saw some profit-taking after hitting the record high, a palm trader in Kuala Lumpur said.
Meanwhile, Indonesia, starting Jan. 24, required palm oil exporters to get shipment approvals from the trade ministry. The government is also discussing a plan to limit exports of the vegetable oil, an industry group said.
“Market is still waiting for Indonesian government to determine the portion of exports,” the trader said.
Dalian’s most-active soyoil contract dropped 0.36%, while its palm oil contract gained 0.23%. Chicago Board of Trade’s soyoil prices fell 0.59%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Elsewhere, oil prices jumped on Monday as geopolitical tensions in Eastern Europe and the Middle East heightened concerns about an already tight supply outlook, while OPEC and its allies continued to struggle to raise their output.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
Palm oil may break a resistance at 5,366 ringgit per tonne and rise towards 5,484 ringgit, Reuters technical analyst Wang Tao said.
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