KUALA LUMPUR, Aug 6: Malaysian palm oil surrendered early gains to end little changed on Tuesday as the market struggled to find its own footing against rival soyoil.

Despite a soft close in US soyaoil futures overnight, palm oil was up at Tuesday’s midday break on technically inspired buying to ease losses posted a day earlier.

But most of the advances were wiped out by the close as local traders feared the soy complex on the Chicago Board of Trade could be headed for another selldown.

We’re still working on borrowed fundamentals, said palm oil dealer in Kuala Lumpur.

We’re looking at exports and production on the CBOT for direction. This shows how indecisive we have become, he said.

The benchmark third-month October contract ended two ringgit down at 1,450 ringgit ($382) a ton, after zapping between a low of 1,449 and high of 1,471.

The contract lost 41 ringgit on Monday due to lower US soyoil prices and higher crude palm oil production forecast for July by key market analyst Ivan Wong.

Compared to Monday’s 4,000 lots, Tuesday volume was just under 3,000, more than half of it coming in late trading.

The market risks being void of fresh leads until export data due on August 10 from cargo surveyors ITS and SGS and the July crop report from the Malaysian Palm Oil Board on August 12.

Until then, it is dependent on soyoil, which remains pressured by improving crop weather in the US midwest.

Return of monsoon rains to soybean growing areas in India have also dashed palm oil producers’ hopes of raising exports to that country which buys more edible oil than any other.

In physical trading of Malaysian crude palm oil on Tuesday, the CPO contract for both August and September saw closing bids at 1,460 ringgit a tonne, against sale offers at 1,470.—Reuters