KUALA LUMPUR, March 27: Malaysian crude palm oil futures fell almost 4 per cent on Thursday as investors booked profit after this week’s strong gains.

But renewed fears of tight edible oil supplies following a strike by farmers in Argentina and the prospect of rising demand limited losses in the palm oil market at the close.

“The market was a bit overdone on Wednesday, so people are taking profit,” said a dealer with a domestic brokerage. “But supply and demand fundamentals are still bullish, everyone is expecting Chinese buying to start soon.”

The benchmark June contract on the Bursa Malaysia Derivatives Exchange fell as much as 145 ringgit to 3,555 ringgit ($1,109) a ton before settling down 60 ringgit at 3,640 ringgit.

Dalian soyoil futures most traded September contract fell 2.7 per cent and Chicago Board of Trade soybean oil was also down in trading during Asian hours.

Palm oil staged a come-back this week as edible oil producing countries from Argentina to Indonesia raised export taxes while consuming nations such as India slashed import duties.

But on Thursday, other traded months on Malaysian derivatives exchange fell between 64 and 165 ringgit.

Overall trade stood at 9,266 lots of 25 tons each.

US soybean futures on the Chicago Board of Trade climbed the 50-cent limit on Wednesday, the third day this week, lifted by the weakness in the dollar and prospects for more export business due to the Argentine farmers’ strike.

Cargo surveyor Intertek Testing Services said Malaysian palm oil exports rose 10.2 per cent to 1,006,100 tons for March 1-25, while Societe Generale de Surveillance reported a 14.8 per cent jump to 1,037,210 tons.

In Malaysia’s physical market, crude palm oil for March shipment in the southern region was quoted at 3,560/3,570 ringgit a tonne. Trades were done between 3,550 and 3,570 ringgit.

—Reuters