KUALA LUMPUR: Malaysian palm oil futures slumped more than 3% on Thursday to their lowest in two weeks, weighed down by slower demand and higher production concerns.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange ended down 141 ringgit, or 3.58%, at 3,796 ringgit ($923.83) a tonne.

Palm fell to its lowest since March 5 and logged its sharpest daily decline in a month. “There is a concern for demand in March and April, and production for the first 15 days of March is showing a rapid increase of almost 30%,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

Prices are set for a major correction due to the culmination of very good production with tapering demand, he added. Dalian’s most-active soyaoil contract fell 1.7%, while its palm oil contract slipped 0.2%. Soyaoil prices on the Chicago Board of Trade were also down 0.7%.

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