KUALA LUMPUR, Dec 5: Malaysian crude palm oil futures closed 1.2 per cent lower on Tuesday, dragged down by a decline in prices of rival soyaoil and a firm ringgit currency.

The benchmark February contract on the Bursa Malaysia Derivative exchange finished down 23 ringgit, or 1.2 per cent, at 1,840 ringgit ($518) a ton, but off an intraday low of 1,827.

The strong ringgit, in particular, is weighing on the market, and soybean oil is also weaker, a dealer said, adding that the market was also correcting from an overbought position.

Palm oil futures prices have fallen 5 per cent so far this month after gaining more than 15 per cent in November.

Soyoil and palm oil compete for exports and their prices often move in step.

The ringgit rose further against the dollar on Tuesday, in line with other Asian currencies, as the dollar remained under pressure from markets betting on a US rate cut.

It traded at 3.5540 to the dollar by 1016 GMT, compared with 3.5860 late on Monday.

A firmer ringgit makes palm oil exports costlier. In the physical market, December shipment for the southern region was quoted at 1,817.50/1,825 ringgit a ton. Trades were done around 1,820 ringgit.—Reuters