KUALA LUMPUR: Malaysian palm oil futures fell 1% on Monday, retreating from last session’s record high, as trade resumed after a long holiday weekend and concerns over dwindling global edible oil supply eased.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange ended down 45 ringgit, or 1.05%, at 4,240 ringgit ($1,026.88) a tonne.

Malaysian markets were closed last Thursday and Friday after a half-day trade on Wednesday for holidays.

“The market is also seen correcting down ahead of any decision on the Indonesia palm oil export levy,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

A $100-per-tonne cut in the levy has been proposed as production has started to improve seasonally while exports are not gaining momentum, he said.

Exports of Malaysian palm oil products for May 1 to 15 rose 18.8% to 695,764 tonnes from April 1 to 15, according to independent inspection company AmSpec Agri Malaysia.

“However, it is unlikely that the second-half exports will retain the momentum as key buyer Europe was absent,” Bagani said.

Last week, the US Department of Agriculture projected corn stocks at the end of the 2021/22 marketing year rising to 1.5 billion bushels, above most analysts’ expectations.

Dalian’s most-active soyaoil contract fell 1.1%, and its palm oil contract declined 1%. Soyaoil prices on the Chicago Board of Trade were down 0.9%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.—Reuters