KUALA LUMPUR: Malaysian palm oil futures fell for a second straight session on Thursday as stocks rose, while the world’s second largest producer raised effective export tax even as larger rival Indonesia lowered it.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange fell 112 ringgit, or 2.9%, to 3,744 ringgit ($825.94) a tonne.

Palm has risen nearly 4.2% this week after two straight weekly declines. Malaysia’s financial markets will be closed on Friday for a national holiday.

Malaysia maintained its October export tax for crude palm oil at 8% and raised its reference price, which in effect increases the payable tax, a circular on the Malaysian Palm Oil Board website showed.

Meanwhile, Indonesia set its crude palm oil reference price for the Sept. 16 to 30 period at $846.32 per tonne, a Trade Ministry regulation showed, down from $929.66 per tonne for the first half of the month.

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The contract has also been under pressure due to high stocks in both Indonesia and Malaysia, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

Palm oil needs to maintain its wider discount over competing soy oil and sun oil to attract buying and, therefore, any price recovery has been met with renewed selling pressure, he added.

Indonesia’s end-July stocks were at 5.91 million tonnes, the Indonesian Palm Oil Association (GAPKI) said. Stock were higher than usual despite easing from June’s 6.69 million tonnes.

Capping losses, exports of Malaysian palm oil products for September 1-15 rose between 19% and 24% during Aug. 1 to 15, cargo surveyors said.

Dalian’s most-active soyoil contract fell 1.5%, while its palm oil contract eased 1.3%. Soyoil prices on the Chicago Board of Trade gained 0.4%.

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