JAKARTA: Malaysian palm oil futures extended losses on Wednesday, tracking rival soyoil’s weakness in Chicago and lack of fresh demand.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange lost 49 ringgit, or 1.1%, to 4,388 ringgit ($974.25) a metric ton by the midday break.

“The futures have been pressured by lack of fresh demand from the market, which will continue in the next two to three months until March,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

Soyoil prices on the Chicago Board of Trade fell 0.3%. Dalian’s most-active soyoil contract rose 0.21%, while its palm oil contract slipped 1.38%.

Palm oil tracks price movements in rival edible oils as it competes for a share of the global vegetable oils market.

India’s palm oil imports in December plunged 41% month on month to a nine-month low, as prices touching a 2-1/2-year high prompted refiners to stock-up on rival soyoil available at a discount, a leading trade body said. Cargo surveyors estimated Malaysian palm oil exports to have fallen between 21.4% and 26.8% during Jan. 1-10, from a month earlier.

Oil prices were little changed, after falling on Tuesday, as a dip in US crude stockpiles and expectations of supply disruptions from sanctions on Russian tankers lent support amid forecasts for lower global fuel demand.

Malaysian palm oil futures lower

Higher crude oil futures make palm a more attractive option for biodiesel feedstock.

The Malaysian ringgit, palm’s currency of trade, fell slightly against the US dollar, making the commodity cheaper for buyers holding foreign currencies.

A bullish target of 4,646 ringgit per metric ton has been aborted for palm oil as the market seems to have lost its momentum around resistance at 4,521 ringgit, according to Reuters’ technical analyst Wang Tao.