KUALA LUMPUR: Malaysian palm oil futures fell over 1% lower on Friday and logged a weekly slump, dragged by weak crude and rival Dalian prices. The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange closed down 76 ringgit, or 1.54%, to 4,851 ringgit ($1,144.91) a tonne.

The contract has fallen 2.74% this week after two straight weekly gains, also hurt by a forecast for stronger production of top vegetable oils next year. “Prices are juxtaposed between bearish technicals and friendly fundamentals,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

Exports of Malaysian palm oil products for Nov. 1-25 rose between 4.5% and 10.9% from the same period in October, according to cargo surveyor data released on Thursday. The pace of growth, however, slowed from a monthly rise of between 9% and 18% seen during Nov. 1-20.

Exports in December are expected to be upbeat, although a lack of selling in the physical market indicates weak production, Paramalingam said. Oil prices recorded their steepest daily fall since July as a new COVID-19 variant spooked investors and added to concerns that a supply surplus could swell in the first quarter, making palm a less attractive option for biodiesel feedstock.

Dalian’s most-active soyoil contract fell 0.8%, while its palm oil contract slipped 2%. The Chicago Board of Trade was closed for a public holiday. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.