KUALA LUMPUR: Malaysian palm oil futures gave up early gains on Wednesday to extend losses to a third session, as weaker rivals Dalian and Chicago contracts weighed on the market.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange closed 9 ringgit, or 0.24% lower at 3,696 ringgit ($822.80) a metric ton. The contract gained 0.51% earlier in the session.

Malaysian palm oil futures had recovered with a double-digit upside after seeing some weakness in the ringgit currency, a Kuala Lumpur-based trader said.

The ringgit, palm’s currency of trade, weakened 0.49% against the dollar, making the commodity less expensive for buyers holding foreign currencies.

Dalian’s most-active soyoil contract fell 1.07%, while its palm oil contract lost 1.74%. Soyoil prices on the Chicago Board of Trade were down 0.33%.

Palm oil extends losses on weaker rival Dalian, Chicago contracts

Palm oil tracks the price movements of rival edible oils as they compete for a share of the global vegetable oils market.

Brent crude futures gained 1.14% to $77.35 a barrel by 1007 GMT. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Palm oil inventories in Malaysia are expected to drop in July for the first time after rising for three consecutive months, a Reuters survey showed.

Industry regulator the Malaysian Palm Oil Board is scheduled to release its monthly palm oil data on Aug. 12.