KUALA LUMPUR, Dec 28: Malaysian crude palm oil futures gave up a firm trend from the morning to end lower on Wednesday after weak prices of US soyaoil weighed on the market.

Trade was also light due to a lack of interest ahead of year-end holidays, dealers said.

The benchmark third-month contract, March, closed down four ringgit at 1,411 ringgit ($373.35) a ton after trading between 1,409 and 1,417 ringgit.

The broader market ended five to six ringgit lower.

Volume totalled 1,468 lots of 25 tons each, compared with Tuesday’s 2,223 lots. The market can easily surpass 6,000 lots on a busy day.

I think this will be the trend till Friday as no one really commits big this time of the year, said a dealer.

Palm oil futures have found support at above 1,400 ringgit since Thursday after rains lashed Malaysia’s northern and eastern regions, sparking floods that raised concerns about output from plantations.

December is traditionally a period of lower production for Malaysian palm oil, but the present weather could cut monthly volume by as much as 15 per cent, compared to the initial forecast of 10 per cent, said dealers.

Just three weeks back, the outlook for palm oil appeared bearish with stocks of oil in the physical market reaching a record 1.6 million tons as demand cooled after the end of major festivals in Asia.

But Societe Generale de Surveillance, a palm oil cargo tracker closely watched by the industry, said on Tuesday that Malaysian exports of oil palm products for Dec. 1-25 were down just 1.6 per cent from the same period of November.

In US soyaoil, the March contract on the Chicago Board of Trade closed down 0.30 cent at 21.30 cents a lb on Tuesday.

In Wednesday’s electronic session, conducted during Asian business hours, the contract fell further to 21.22 cents, weighing on palm oil futures. It eventually closed that session at 21.35 cents.

In the spot market for crude palm oil, offers for December and January closed at 1,410 ringgit a ton versus bids at 1,405 ringgit. Trades were done at 1,410-1,405 ringgit.—Reuters