Malaysian palm oil futures gave up earlier gains and reversed a two-day upward trend on Wednesday due to weakening soyoil and crude oil prices, alongside a stronger ringgit, dampening investor confidence.

The main palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange closed down 28 ringgit, or 0.71%, at 3,943 ringgit ($825.76) per metric ton.

Dalian's most-active soyoil contract and palm oil contract ended afternoon trading higher at 0.92% and 0.86%, respectively, while soyoil prices on the Chicago Board of Trade fell 0.59%.

Soybean prices, which influence soyoil, experienced a slight decline as traders evaluated U.S. planting weather prospects for the week.

Oil prices remained relatively stable above $88 per barrel on Wednesday, following industry data indicating a surprising decline in U.S. crude stocks last week, alongside reduced business activity in the world's largest oil consumer.

Brent crude futures fell by 31 cents, or 0.35%, to $88.11 per barrel, while U.S. West Texas Intermediate crude futures lost 36 cents, or 0.43%, to $83 per barrel by 0950 GMT.

The downturn in crude oil futures makes palm oil a less appealing option for biodiesel production.