JAKARTA: Malaysian palm oil futures fell for a third straight session on Monday to their lowest closing price in nearly seven weeks, dragged by weakness in rival vegetable oils and global economic concerns.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange lost 130 ringgit, or 3.32%, to 3,790 ringgit ($845.42) a tonne, the biggest daily drop since Jan. 25.

“Despite a reasonably good March export performance by Malaysian palm oil, the weaker macro, sharply lower EU rapeseed oil and Black Sea Sunflower oil prices (are) pressuring palm oil to remain competitive,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

Palm posts second weekly loss on lower rival oils

European rapeseed was at a discount against crude palm oil in the Rotterdam market for the first time in 25 years, while Black Sea sunflower oil prices have dropped nearly 15% this month, he added.

Exports of Malaysian palm oil products from March 1-20 rose between 19.8% and 29.8%, compared to shipments during the February 1-20 period, data from cargo surveyor Intertek Testing Services and independent inspection company AmSpec Agri Malaysia showed.

Dalian’s most active soyoil contract was down 0.56%, while its palm oil contract dropped 2.29%. Soyoil prices on the Chicago Board of Trade fell 1.97%.