JAKARTA, Dec 21: Malay-sian crude palm oil futures closed lower on Wednesday in thin trade after a drop in Chicago prices, but fears of local supply disruption after heavy rains will help prices hold above 1,400 ringgit a ton, traders said.

The market is finding support from weather problems, said a trader. Supplies might be affected to some extent.

Third-month March ended down 3 ringgit at 1,406 ringgit ($372) a ton. February fell 3 ringgit to 1,400.

But April was up 1 ringgit at 1,410.

Overall volumes dropped around 63 per cent to 1,809 lots from Tuesday’s 4,917 lots on short covering.

For January delivery, offers were quoted at 1,400 ringgit a ton, against bids at 1,395. No deals were reported.

We are seeing some buyers at 1,395 ringgit while sellers are offering at 1,400, said a trader, referring to December cargoes.

The palm oil products market is not moving as there are no end buyers. I don’t think the market is going anywhere.—Reuters