JAKARTA, May 3: Malaysian crude palm oil extended losses on Wednesday as the ringgit gained further against the US dollar, but traders said prices would likely find support at 1,450 ringgit a ton.

Palm oil prices, which lost 1 per cent on Tuesday because of the strengthening ringgit, are expected to extend losses on talks of the currency’s further gains in the near future.

It’s mainly because the ringgit strengthened from yesterday, said a trader in Kuala Lumpur. There is talk in the market now that the ringgit could reach 3.5 in coming days.

The benchmark third-month crude palm oil contract on Bursa Malaysia Derivatives, July, ended seven ringgit down at 1,458 ringgit ($404.1) a ton.

Overall volumes stood at 9,715 lots of 25 tons each.

The ringgit, which has gained about 4.7 per cent against the US dollar so far this year, rose further on Wednesday as the US. dollar fell on concern the Federal Reserve could pause a series of rate rises.

The ringgit’s rise would make palm oil relatively more expensive to overseas buyers. The local currency closed at 3.608 per dollar on Wednesday, versus Tuesday’s close at 3.614.

But traders said increased demand for vegetable oil from biodiesel makers would limit a sharp drop in prices.

I would see immediate support at 1,450 ringgit a ton. Strong demand from Europe and the US for alternative fuel will be one factor supporting palm oil, said another trader in Kuala Lumpur.

On Wednesday’s electronic trading, Chicago Board of Trade May soyaoil futures ended 0.15 cents down at 25.32 cents per lb and July was up by 0.20 cent at 25.93 cents.—Reuters