SINGAPORE: Malaysian palm oil futures fell on Monday, tracking weakness in rival edible oils on the Dalian Commodity Exchange and the Chicago Board of Trade (CBOT).

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange declined 27 ringgit, or more than 0.8pc, to 3,295 ringgit a tonne.

"Palm prices are lower now because of external markets," a Kuala Lumpur-based trader told Reuters.

The Dalian Commodity Exchange's most-active soyoil contract fell 0.3pc, while its palm oil contract dropped 1.6pc.

Soybean oil prices on the Chicago Board of Trade fell 1.3pc.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Cheaper rivals elsewhere means that palm oil is a less attractive option for foreign buyers.

The contract earlier fell over 1pc due to a report saying that the Malaysian government had no plans to extend a tax exemption on the edible oil.

Bloomberg reported on Sunday Malaysia had no current plans to extend the tax exemption on palm oil that is set to end on Dec. 31, citing the country's Plantation Industries and Commodities Ministry.