KUALA LUMPUR: Malaysian palm oil futures fell on Wednesday, as traders booked profit after prices rose to a two-week high in the previous session and rival oils weakened.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange had dropped 1.87% to 4,683 ringgit ($1,120.20) by the midday break.

It rose 3.56% on Tuesday, but slipped 0.5% in overnight trade.

A Kuala Lumpur-based trader said palm prices may cool off given high selling interest after big gains in the previous session.

Research head of Sunvin Group, a Mumbai-based vegetable oil broker, Anilkumar Bagani, said the rally in the past few sessions has encouraged profit-taking.

"The market is now in a bid to consolidate before the Malaysian palm oil supply and demand previews, ahead of (government industry) data release next month," he said.

Dalian's soyoil contract slid 0.75%, while its palm oil contract dropped 0.93%. Soybean oil prices on the Chicago Board of Trade fell 0.44%.

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