KUALA LUMPUR: Malaysian palm oil futures fell for a second day on Wednesday following news of a US plan to implement a smaller biofuel mandate than it had initially proposed.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange slid 111 ringgit, or 2.98%, to 3,616 ringgit ($778.81) per metric ton.

The Biden administration plans to increase the amount of biofuel that oil refiners must blend into the nation’s fuel mix over the next three years, but the plan includes lower mandates for corn-based ethanol than it had initially proposed, two sources familiar with the matter told Reuters.

Malaysia has maintained its July export tax for crude palm oil at 8% and lowered its reference price, a circular on the Malaysian Palm Oil Board website showed.

Exports of Malaysian palm oil products for June 1-20 fell 16.8% from May, cargo surveyor Intertek Testing Services said. Another cargo surveyor, AmSpec Agri Malaysia, said exports fell 12.9%.

A declining ringgit limit losses. The ringgit, palm’s currency of trade, fell 0.11% against the dollar to its lowest since November, making the commodity cheaper for buyers holding foreign currency.