Palm oil ends lower than rival soyoil as lack of new demand weighs.

Malaysian palm futures closed lower Wednesday as a result of the weakness of soyoil in Dalian and Chicago and a lack fresh demand.

The benchmark contract for palm oil delivery in March on the Bursa Derivatives exchange lost 75 ringgit or 1.69% to 4,362 Ringgit ($969.98).

The lack of demand for futures will continue to be a problem in the coming two-to-three months, until March, according to Paramalingam Supramaniam at Selangor's brokerage Pelindung Bestari.

The Chicago Board of Trade soyoil price fell by 0.5%. Dalian's soyoil most active contract fell 0.44% while palm oil prices dropped 2.77%.

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

The cargo surveyors estimate that Malaysian palm oil exported fell between 15.5% to 23.7% from Jan. 1-15 compared with a month ago.

A leading trade group said that India's palm oils imports fell 41% in December, month-on-month, to a 9-month low. Prices reached a 2-1/2 year high, prompting refiners stock up on soyoil, which was available at a discounted price.

The oil prices increased on Wednesday, reversing the losses of the previous day. However, gains were limited as the market was awaiting more clarity about the impact of the sanctions against Russian tankers.

Palm oil is a better option as a biodiesel feedstock due to the higher crude oil futures.

The Malaysian Ringgit, the currency of palm, was largely flat in relation to the U.S. Dollar.

(source: Reuters)