JAKARTA: Malaysian palm oil futures fell for the sixth consecutive day on Monday after data from the Malaysian Palm Oil Board (MPOB) showed an increase in inventories and declining exports in the world’s second-biggest producer of the oil.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange lost 116 ringgit, or 3.03%, to 3,714 ringgit ($794.78) per metric ton on its closing. The contract declined 5.20% last week.

Malaysia’s palm oil stocks at the end of August rose 22.5 from the previous month to 2.12 million tons, which is the highest in seven months, MPOB data showed.

“Palm oil continues its weak trend due to much higher MPOB end stocks in August and optimism of continued better production in September,” said Sandeep Singh, director of The Farm Trade, a Kuala Lumpur-based consulting and trading company.

Palm logs first weekly drop in four as outlook, rival oils weigh

Crude palm oil production gained 8.9% from July to 1.75 million tons in August, while palm oil exports fell to 1.22 million tons, the MPOB said.

Dalian’s most-active soyoil contract rose 0.15%, while its palm oil contract fell 1.30%. Soyoil prices on the Chicago Board of Trade dropped 0.69%.

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

Exports of Malaysian palm oil products for Sept. 1-10 fell 11.2% to 350,823 metric tons from 395,145 metric tons shipped during the Aug. 1-10 period, according to cargo surveyor Intertek Testing Services.

Meanwhile, India’s palm oil imports are set to jump 26% to a record high in the 2022-23 year ending on Oct. 31, as a recovery in consumption and competitive prices prompts refiners to increase purchases, the country’s top palm oil buyer said last week.

Palm oil may bounce to 3,859-3,876 ringgit per metric ton, before turning around and retesting a support of 3,795 ringgit, Reuters technical analyst Wang Tao said.