KUALA LUMPUR, Jan 16: Malaysian crude palm oil futures fell 1.7 per cent on Wednesday, moving into a second day of losses after sharp falls in crude markets and weakening demand from the biofuel sector spurred profit-taking.

But palm oil prices, up 7 per cent since the start of the year, were supported by a supply squeeze after last year’s monsoon floods, traders said.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange finished down 57 ringgit at 3,263 ringgit ($999) a ton.

On Monday, crude palm oil futures scored an all-time high of 3,420 ringgit per ton on overall strength in commodity markets.

“The long-awaited correction continues as the steep drop in exports and slightly weaker crude oil is an example of how biodiesel can’t survive at these levels,” a senior trader with a commodities brokerage said.

Other traded months fell between 51 and 76 ringgit. Overall volume doubled 20,902 lots of 25 tons each, from about 10,000 lots traded on a routine day.

Heavyweight planters such as Sime Darby, IOI Corp, KL Kepong and Asiatic Development fell sharply, weighing on the broader market which settled lower. —Reuters