SINGAPORE: Malaysian palm oil futures finished nearly 2% lower on Tuesday following a dip in rival edible oils, although strong export data helped limit losses.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange slid 71 ringgit, or 1.8% to 3,865 ringgit ($831.90) per metric ton, erasing gains from the previous session.

“Crude palm oil futures were seen trading lower today on long liquidation tracking weaker soy oil futures on CBOT overnight,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

Easing Chinese vegetable oil futures and CBOT soybean futures in Asian trading hours on the back of larger U.S. soybean pods data further dragged prices, Bagani added.

Palm rebounds nearly 2% on stronger rival oils, rising exports

Dalian’s most-active soyoil contract dipped 0.2%, while its palm oil contract lost 0.7%. Soyoil price on the Chicago Board of Trade (CBOT) edged 0.9% lower.

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

Production at South Peninsular Palm Oil Mills Association mills showed better recovery than anticipated during Aug. 1-20, up 7% from last month.

Malaysia maintained its export tax for crude palm oil for September at 8% and increased its reference price, according to a Malaysian Palm Oil Board circular.

Exports of Malaysian palm oil products for Aug. 1-20 rose between 9.8% and 17.4% from a month ago, cargo surveyors Intertek Testing Services and Amspec Agri said.

The Malaysian ringgit, palm’s currency of trade, has been hovering near a more than one-month low since last Thursday. A weaker ringgit makes palm oil more attractive for foreign currency holders.

Palm oil may retest a support of 3,861 ringgit per metric ton, a break below which could open the way towards 3,778 ringgit, Reuters technical analyst Wang Tao said.