KUALA LUMPUR: Malaysian palm oil futures extended losses on Monday to its lowest closing in nearly two weeks, as weaker crude outweighed anticipation of lower output and improving demand.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange declined 2 ringgit, or 0.05%, at 3,888 ringgit ($831.12) a metric ton, its lowest closing level in nearly two weeks.

The contract was expected to re-test the 4,000 ringgit mark due to easing production, higher exports and lower end-month stocks, according to Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.

Exports of Malaysian palm oil products during Nov. 1-25 were estimated to be up between 7% and 14% from the previous month, data from surveyors Intertek Testing Services and AmSpec Agri Malaysia showed on Saturday.

However, rising palm oil prices and negative import margins in key buyer India after heavy imports in the past few months have led to lower purchases for December and January shipments, LSEG Agriculture Research said in a note.

Malaysia’s production might fall further in late November due to wet weather conditions across the country, triggering flooding and disrupting harvesting, LSEG wrote. In related oils, Dalian’s most active soyoil contract rose 0.22%, while its palm oil contract ticked up 0.54%.

Soyoil prices on the Chicago Board of Trade were up 1.23%. Palm oil prices are affected by the soyoil prices as they compete for a share in the global vegetable oil market.

Oil prices slipped, with Brent falling toward $80 a barrel, as investors awaited the OPEC+ meeting later this week for an agreement to curb supplies into 2024.

Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.