KUALA LUMPUR: Malaysian palm oil futures eased on Thursday to a 10-day closing low as China’s stringent COVID-19 policies weighed on edible oil demand, but a surge in early November exports amid smaller-than-expected inventories limited losses.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange slid 18 ringgit, or 0.43%, to 4,180 ringgit ($889.74) a tonne, down for a third straight session.

Malaysia’s palm oil stocks at the end of October rose 3.7% to a three-year high of 2.4 million tonnes from the prior month, Malaysian Palm Oil Board (MPOB) data showed.

Production for October rose 2.4% to 1.81 million tonnes, while exports gained 5.7% to 1.5 million tonnes, the industry regulator said.

Inventories and imports were much lower than expected, yet demand has improved due to a widening spread against soft oils, said Marcello Cultrera, director at commodities consultancy Apricus 8 Pte Ltd in Kuala Lumpur.

Exports from the world’s second-largest producer during Nov. 1-10 rose 12.7% to 420,477 tonnes from the same period in October, cargo surveyor Amspec Agri said.

In related oils, China’s commitment to its zero-COVID approach hurt consumption and capped edible oil prices.

Dalian’s most-active soyoil contract fell 1.2%, while its palm oil contract slipped 0.8%. Soyoil prices on the Chicago Board of Trade were up 0.9%.

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