Malaysian palm oil futures closed lower for a second straight session on Thursday, tracking weakness in rival vegetable oils and global crude oil.

The benchmark palm oil contract FCPOc3 for January delivery on the Bursa Malaysia Derivatives Exchange fell 0.79% to 4,927 ringgit ($1,187.80) per tonne.

It extended Wednesday’s 1% drop. The contract, which last week hit a record high, has gained more than 5% this month after an 8% jump in September.

The contract dropped as much as 2.8% earlier in the session before recovering some ground.

“The CPO futures is under profit-taking, following external markets,” a Kuala Lumpur-based trader said, adding that palm oil followed the Dalian market lower as well as energy prices.

Dalian’s most active soyoil contract DBYcv1 fell 1.69%, while its palm oil contract DCPcv1 dropped 1.97%. On the Chicago Board of Trade BOcv1 were down 0.39%.

Oil prices slumped to their lowest in two weeks after official data showed a surprise jump in U.S. inventories of crude, and rising cases of COVID-19 in Europe, Russia, and some outbreaks in China dented hopes for an economic recovery. O/R

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market, while cheaper crude prices make palm less attractive as a biofuel feedstock.

On the technical front, palm oil may fall to 4,822 ringgit per tonne to complete a correction from the Oct. 21 high of 5,220 ringgit.
Source: Reuters (Reporting by Fransiska Nangoy; Additional reporting by Bernadette Christina Munthe; Editing by Subhranshu Sahu, Rashmi Aich and Ramakrishnan M.)