KUALA LUMPUR: Malaysian palm oil futures ticked down on Monday, extending losses for a third consecutive session after a survey showed end-August inventories expanding above 2 million tonnes for the first time in over two years.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange fell 3 ringgit, or 0.08%, to 3,912 ringgit ($871.08) a tonne, its lowest closing since Aug. 5.

Selling pressure were seen on expectations of higher production and inventories, a Kuala Lumpur-based trader said.

Malaysia’s palm oil inventories at end-August likely jumped 14.5% to 2.03 million tonnes from the month before, a Reuters survey showed.

Production is seen climbing 8% to 1.7 million tonnes, while exports likely eased 0.14% to 1.32 million tonnes.

Palm ends at near one-month low on fears of higher supply

The Malaysian Palm Oil Board is scheduled to release August supply and demand data next week.

In key buyer India, the nation’s palm oil imports nearly doubled to an 11-month high in August from a month earlier, as a correction in prices prompted refiners to ramp up purchases, five dealers told Reuters on Monday.

Limiting losses, oil prices jumped more than $2 a barrel ahead of an OPEC+ meeting, making palm a more attractive option for biodiesel feedstock.

Dalian’s most-active soyoil contract rose 1.9%, while its palm oil contract gained 0.6%. Soyoil prices on the Chicago Board of Trade, which is closed for a public holiday, jumped 4% in the previous session.

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