After two years of losses, VEGOILS Palm ends the year with a gain of more than 19%

The market closed lower on Tuesday due to lack of new buying at year's end.

The benchmark contract for palm oil delivery in March on Bursa Malaysia's Derivatives exchange fell by 107 ringgit or 2.35% to $4444 ringgit (US$994.63) a metric ton.

Anilkumar bagani, the research head of Sunvin Group in Mumbai, said that futures prices were lower due to a lack of new buying from destination markets.

Dalian's palm oil contract, which is the most active contract in Dalian, lost 1.1% and gained 0.16%. The Chicago Board of Trade soyoil price fell 0.45%.

As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.

The oil prices increased on Tuesday, after data revealed that China's manufacturing sector expanded in December. However, they are still on course to finish lower for the second consecutive year because of demand concerns in major consuming countries.

Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger.

The palm ringgit's currency fell by 0.18% against U.S. dollars, making it cheaper for buyers who hold foreign currencies.

Surveyors of cargo estimated that Malaysian palm oil exported between Dec. 1-25 fell by 1.1% to 4% compared with a month ago. $1 = 4.4680 Ringgit (Reporting and editing by Janane Venkatraman; Subhranshu sahu, Shrey Biswas and Janane Venkatraman)

(source: Reuters)