KUALA LUMPUR, Jan 28: Malaysian crude palm oil futures slid 2.6 per cent on Wednesday in light post-holiday trading after crude oil slumped and a cargo surveyor reported slower sales, fanning demand concerns.

But concerns that global supplies of vegetable oils may fall, as the Argentine soy crop suffers its worst drought since 1961, helped to curb some losses, with traders saying the impact could boost demand for palm oil.

The market should be falling to 1,700-1,750 ringgit, trying to play catch up with crude, but the expectation of more demand coming in because there could potentially be less South American soyaoil, has supported it, a trader with a commodities brokerage said.

I don’t think that is very plausible although the sentiment of stronger demand in coming months is there. Just look at the cargo surveyor data.

Exports of Malaysian palm oil products for Jan. 1-25 fell 29.2 per cent to 952,478 tons from 1,345,325 tons shipped between Dec. 1 and 25, cargo surveyor Intertek Testing Services said on Wednesday.

Other traded contracts fell between 34 ringgit and 50 ringgit. Overall volume dropped to 6,079 lots of 25 tons each from about 10,000 lots as many traders were still away for Lunar New Year following market closures on Monday and Tuesday.

Exports of Malaysian palm oil products for Jan. 1-25 fell 29.2 per cent to 952,478 tons from 1,345,325 tons shipped between Dec. 1 and 25, cargo surveyor Intertek Testing Services said on Wednesday.

In Indonesia, the world’s largest palm oil producer, the state marketing centre said it did not hold a palm oil tender on Wednesday.

The centre normally sells palm oil from state plantations.

Producers in Medan -- home to Belawan port, Indonesia’s key palm oil export port -- sold palm oil at 6,190-6,197 rupiah per kg on Wednesday.

Meanwhile, refiners in Jakarta sold refined, bleached, deodorised (RBD) palm oil, used as cooking oil, at 6,650 rupiah per kg against 6,700 rupiah per kg on Friday.

In the Malaysian physical market, palm oil for Jan. and Feb. shipment was quoted at 1,800-1,900 ringgit per ton in the southern and central regions. No trades were done by the end of the afternoon session.—Reuters