JAKARTA: Malaysian palm oil futures eased on Monday on profit taking, after hitting an all-time high earlier in the session.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange lost 0.12% to 5,610 ringgit ($1,340.82) per tonne in by midday break.
The contract hit an all-time high of 5,749 ringgit a tonne in early trade tracking other vegetable oils, but erased gains as profit taking kick in, a Kuala Lumpur-based trader told Reuters.
Palm's rally earlier in the day was supported by continued concerns of supply constrain, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
"Palm oil market is on fire on loss of production and the focus has moved to January-end Malaysian palm oil inventories."
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Dalian's most-active soyoil contract and its palm oil contract gained 4.87% and 4.02%, respectively, as the Chinese market reopened following a week-long Lunar New Year holiday. Soyoil prices on the Chicago Board of Trade were up 1.09%.
Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
Palm may break a resistance at 5,676 ringgit per tonne and rise to 5,749 ringgit, driven by a wave 5-3, said Reuters technical analyst Wang Tao.
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