KUALA LUMPUR: Malaysian palm oil futures slipped on Wednesday, weighed down by sluggish export demand and weaker Chicago soyoil prices, while investors awaited cargo surveyor data for further direction.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange lost 33 ringgit, or 0.67%, to 4,891 ringgit ($1,094.92) a metric ton by the midday break.

The contract rose 0.51% in the last session.

The market traded lower on weaker export demand and declining Chicago soybean oil prices, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.

Cargo surveyors are expected to release later in the day their estimates for Malaysian palm oil exports during the Nov. 1-20 period.

Dalian’s most-active soyoil contract rose 0.2%, while its palm oil contract added 0.59%.

Soyoil prices on the Chicago Board of Trade were down 0.25%.

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

Oil edged higher amid an escalation in the Ukraine war and signs of growing Chinese crude imports, while rising US crude stocks checked overall price gains. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.

Palm oil gains on bargain buying

The ringgit, palm’s currency of trade, strengthened 0.09% against the dollar, making the commodity more expensive for buyers holding foreign currencies.

Malaysia raised its December export tax for crude palm oil to 10% and increased its reference price to 4,471.39 ringgit a ton, a circular on the Malaysian Palm Oil Board website showed.

Palm oil may test support at 4,869 ringgit per ton, a break below which could open the way towards 4,732 ringgit to 4,816 ringgit range, Reuters technical analyst Wang Tao said.