Malaysian crude palm oil futures ended lower in thin trading on Wednesday on speculation that prices could take a further hit due to pressure from rival US soyoil.
The market was higher at the start as short-covering emerged after a day of profit-taking.
But it surrendered the gains by midday, and after a brief rise in the afternoon, fell again in the last hour.
At the close, the benchmark January palm oil contract on the Malaysia Derivatives Exchange was down two ringgit at 1,419 ringgit ($373.42) a tonne.
It earlier hit an intraday high of 1,430 and low of 1,408.
Other contracts settled five to six ringgit down.
Trade was light at 4,636 lots of 25 tonnes each.
The market usually see a volume of 6,000 lots or more on a busy day.
Soyoil futures on the Chicago Board of Trade fell on Tuesday, with nearby contracts closing 0.03-0.08 cent a lb down, on profit-taking.
Soyoil and palm oil compete for the same export markets and their prices often move in step.
"Fundamentally speaking, there are little reasons for the (palm) market to be up today given the way soyoil has performed," said a trader.
January futures rose nearly 30 ringgit in Tuesday's intraday trade after data from cargo surveyors hinted that palm oil exports could recover from a slump in September.
But profit-taking wiped out the gains by the close.
Cash prices of crude palm oil were also down at Wednesday's close.
Physical oil for the combined months of October and November saw buyers/sellers at 1,460/1,470 ringgit a tonne in Malaysia's southern and central regions, against Tuesday's close of 1,465/1,475.
Trades were reported at 1,470-1,460 ringgit a tonne in the south and 1,472.50-1,465 in the central zone.
PALM OIL FUTURES:
October-November (south): 1470.
Open/High/Low: 1428/1430/1408.
Previous close: 1475.
PALM OIL PHYSICALS:
January (3rd month): 1419.
Previous settlement: 142.
FUTURES:
Benchmark January down two ringgit to 1,419 ringgit ($373.42) a tonne on selling sparked by concerns over soyoil.
PHYSICALS: Also down, with the combined October/November contract trimming offers by 5 ringgit to 1,470 a tonne.