Lang
Jakarta: Malaysian palm oil futures closed the year 19.43% higher on Tuesday, ending two consecutive years of losses, even as the market fell in the day's trading amid a lack of fresh buying ahead of the year-end.
The benchmark palm oil contract for March delivery on Bursa Malaysia Derivatives fell 107 ringgit, or 2.35%, to close at 4,444 ringgit ($994.63) a tonne.
"Futures fell sharply today due to a lack of fresh buying from destination markets," said Anilkumar Bagani, head of research at Mumbai-based vegetable oil brokerage Sunvin Group.
The most-active soyoil contract on China's Dalian exchange rose 0.16%, while its palm oil contract fell 1.1%. Soyoil prices on the Chicago Mercantile Exchange also slipped 0.45%.
Palm oil is influenced by the price movements of competing vegetable oils as it competes for a share of the global market.
Oil prices rose on Tuesday after data showed an expansion in Chinese industrial activity in December, though crude is on track to end the year lower for a second consecutive year on demand concerns in major consuming nations.
Stronger crude oil futures make palm oil a more attractive option as a feedstock for biodiesel production.
The ringgit, the currency used in palm oil trade, weakened 0.18% against the US dollar, making the commodity cheaper for buyers using foreign currencies.
Shipping surveyors estimated that Malaysian palm oil exports fell between 1.1% and 4% during 1-25 December compared with the previous month.