JAKARTA: Malaysian palm oil futures closed lower on Wednesday, tracking rival soyoil’s weakness in Dalian and Chicago markets and lack of fresh demand.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange lost 75 ringgit, or 1.69%, to 4,362 ringgit ($969.98) a metric ton at the close.

“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 0.5%. Dalian’s most-active soyoil contract down 0.44%, while its palm oil contract slipped 2.77%.

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

Cargo surveyors estimated Malaysian palm oil exports to have fallen between 15.5% and 23.7% during Jan. 1-15, from a month earlier.

Palm ends higher on soyoil strength at Dalian and Chicago

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.

Oil prices rose on Wednesday, trimming losses from the previous day, as the focus turned back to potential supply disruptions from sanctions on Russian tankers, though gains were capped as the market awaited more clarity on their impact.

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

The Malaysian ringgit, palm’s currency of trade, traded largely flat against the U.S. dollar.