KUALA LUMPUR: Malaysian palm oil futures fell more than 3% on Monday, weighed down by weakness in the Dalian palm olein.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange slid 153 ringgit, or 3.03%, to 4,900 ringgit ($1,094.24) a metric ton at the close.

The contract rose 2.5% in the previous session.

The weakness seen in the palm market today stems from spread adjustments against Dalian’s palm olein, a Kuala Lumpur-based trader said.

Dalian’s most-active soyoil contract fell 2%, while its palm oil contract lost 1.08%. Soyoil prices on the Chicago Board of Trade were down 1.46%.

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

Palm rises after 3 days of fall, set for first weekly drop in four

The ringgit, palm’s currency of trade, weakened 0.22% against the dollar, making the commodity cheaper for buyers holding foreign currencies.

Oil prices edged up after fighting between Russia and Ukraine intensified over the weekend, although concerns about fuel demand in China and forecasts of a global oil surplus weighed on markets.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.