KUALA LUMPUR: Malaysian palm oil futures fell more than 2% on Wednesday, weighed down by sluggish exports demand and weaker Chicago soyoil prices.

The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange lost 107 ringgit, or 2.17%, to 4,817 ringgit ($1,077.87) a metric ton at the close. The contract rose 0.51% in the last session.

The market traded lower on weaker export demand and declining Chicago soybean oil prices, said David Ng, a proprietary trader at Kuala Lumpur-based trading firm Iceberg X Sdn Bhd. Cargo surveyors estimated that Malaysian palm oil exports during the Nov. 1-20 period fell between 1.4% and 5.3%.

Dalian’s most-active soyoil contract rose 0.64%, while its palm oil contract added 0.79%. Soyoil prices on the Chicago Board of Trade were down 1.65%.

Palm oil tracks price movements of rival edible oils, as they compete for a share of the global vegetable oils market. Oil was broadly stable for a second day as concerns about escalating hostilities in the Ukraine war potentially disrupting oil supply from Russia and signs of growing Chinese crude imports offset data showing US crude stocks rising.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock. The ringgit, palm’s currency of trade, strengthened 0.04% against the dollar, making the commodity more expensive for buyers holding foreign currencies.

Malaysia raised its December export tax for crude palm oil to 10% and increased its reference price to 4,471.39 ringgit a ton, a circular on the Malaysian Palm Oil Board website showed.