KUALA LUMPUR: Malaysian palm oil futures reversed earlier gains to close lower for a second straight session on Wednesday, after Indonesia cancelled plans to implement its mandatory B50 biodiesel programme this year, though signs of improving export demand from India and China limited the decline. The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange slipped 21 ringgit, or 0.52%, to 4,043 ringgit ($996.55) a metric ton at the close. The market is seeing follow-through buying in unison with the Chicago soyoil markets, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari. Supramaniam added that January exports are picking up momentum with strong figures reported for the first 10 days and expectations that the first 15 days will also show positive numbers. “We are seeing some interest from India and China in the last two days,” he said. Cargo surveyors estimated that exports of Malaysian palm oil products for January 1-10 rose between 17.7% and 29.2% from a month earlier. Cargo surveyors are expected to release their export estimates for January 1-15 on Thursday. Indonesia has scrapped plans for a mandatory B50 grade of palm oil-based diesel this year and will stick with B40 owing to technical and funding concerns, government officials said on Wednesday, easing concerns over strains on global palm oil supplies. Dalian’s most-active soyoil contract fell 0.12%, while its palm oil contract shed 0.55%. Soyoil prices on the Chicago Board of Trade were up 0.68%. Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market. The ringgit, palm’s currency of trade, strengthened 0.22% against the dollar, making the commodity slightly expensive for buyers holding foreign currencies. Oil prices rose for a fifth straight session on fears of Iranian supply disruptions due to deadly civil unrest and as the U.S. and Iran traded threats. Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.