JAKARTA: Malaysian palm oil futures fell nearly 7% on Monday, declining for a fourth straight session to hit their lowest since Jan. 17, as a resumption of Indonesian exports and cheaper soyoil weighed on the market.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange lost 374 ringgit or 6.86%, to 5,080 ringgit ($1,154.55) per tonne by the midday break.

“The resumption of Indonesia’s palm oil exports and expectations of a stronger Malaysian palm oil production recovery in June have further pressured the market,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

Palm oil targets 4,896 ringgit

Indonesia, the world’s top palm oil exporter, had issued permits for shipments of more than 820,000 tonnes of the edible oil under its Domestic Market Obligation scheme and export acceleration programme, as of last week, a trade ministry official said.

Sharp declines in soybean oil and crude oil prices amid concerns about slowing global economic growth and fuel demand are also pressuring palm oil prices. Dalian’s most-active soyoil contract fell 1.8%, while its palm oil contract dropped 3.76%.

The Chicago Board of Trade was closed on Monday for the Juneteenth holiday. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Malaysian palm oil exports for June 1-20 fell 10.5% to 738,368 tonnes from 824,589 tonnes shipped during May 1-20, cargo surveyor Intertek Testing Services said, adding pressure to the price.

Palm oil may test a support at 5,086 ringgit per tonne, a break below which could open the way towards 4,896 ringgit, according to Reuters technical analyst Wang Tao.