JAKARTA: Malaysian palm oil futures dropped for a second consecutive session on Thursday as a stronger ringgit and weakness in rival vegetable oils weighed on the contract.

The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange lost 37 ringgit, or 0.95%, to 3,871 ringgit ($847.60) a metric ton at closing.

The contract fell 0.18% in July, its second consecutive monthly drop.

“Malaysia crude palm oil futures is tracking Dalian performance closely as well as our ringgit strengthening,” a Kuala Lumpur-based trader said.

The Malaysian ringgit, the contract currency of trade, strengthened against the U.S. dollar for a sixth straight session, rising 0.54% on Thursday.

A stronger ringgit can reduce buying interest for foreign currency holders.

Palm oil tracks rival oils lower, set for second monthly drop

Dalian’s most-active soyoil contract was down 0.71%, while its palm oil contract dropped 0.82%. Soyoil prices on the Chicago Board of Trade were down 0.86%.

Palm oil tracks the price movements of rival edible oils as they compete for a share of the global vegetable oils market.

Malaysian palm oil exports in July are seen rising between 22.8% and 30.91%, cargo surveyor Amspec Agri and Intertek Testing Services said.

Cargo surveyor Societe Generale de Surveillance (SGS) estimated exports stood at 1.48 million tons, according to LSEG, a 23.6% jump from June exports.