KUALA LUMPUR: Malaysian palm oil futures' weekly gains narrowed after a seven-session rally snapped on Friday due to a stronger ringgit, while a rebound in soyoil prices capped the decline.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange fell 28 ringgit, or 0.67 per cent, to RM4,124 (US$1,001.46) a metric tonne at the mid-day break.
The contract has gained 4.5 per cent so far this week.
Palm oil prices fell due to a stronger ringgit, which may curb demand in the short-term, said David Ng a proprietary trader at a Kuala Lumpur-based trading firm Iceberg X Sdn Bhd.
Traders are also closing out their positions and booking profits amid the recent price rally, further weighing on Malaysian palm oil futures, Ng said.
"However, the rebound in Chicago soybean prices is lending some strength to the palm market from falling lower."
The ringgit, palm's currency of trade, strengthened 0.48 per cent against the U.S. dollar, making the commodity more expensive for buyers holding foreign currencies.
Oil prices fell for a third day and are on course to end the week lower as investors focused on expectations of higher supplies from Libya and the broader OPEC+ group of oil exporters.
Brent crude futures for November were down 0.32 per cent at US$71.37 a barrel, as of 0453 GMT.
Weaker crude oil makes palm a less attractive option for biodiesel feedstock.
Dalian's most-active soyoil contract rose 0.2 per cent, while its palm oil contract added 1.32 per cent.
Soyoil on the Chicago Board of Trade gained 0.09 per cent.
Palm oil tracks prices of rival edible oils, as they compete for a share of the global vegetable oils market.
Palm oil may test support at RM4,120 per metric tonne, a break below which could open the way towards the RM4,067-4,093 range, Reuters technical analyst Wang Tao said.