KUALA LUMPUR, Dec 13: Malaysian palm oil futures dropped to their lowest in more than three weeks on Friday, stretching losses into a fifth straight session, as weakness in competing soy markets stoked worries of a shift in demand from the tropical oil.

The US soyoil contract for January slipped 0.9 per cent in late Asian trade, while the most active May soybean oil contract on the Dalian Commodities Exchange plunged2.5pc.

Prospects of smaller supplies from Malaysia after monsoon floods in several palm-growing areas dented harvesting in the world’s No.2 producer have helped keep a floor under prices.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange fell 2pc to 2,561 ringgit ($793) per tonne by Friday’s close.

Total traded volume stood at 31,861 lots of 25 tonnes, slightly below the average 35,000 lots. Softer demand for palm oil, typical towards the year-end as palm solidifies in winter, have pressured palm prices this to post a weekly drop of 4.1pc, the first in five weeks.

Data from cargo surveyors showed that Malaysian palm oil exports fell by as much as 26pc for the Dec 1-10 period compared to a month ago, as buyers from top buyers India, China and Europe cut back purchases.

Market players will be watching for export data for the first half of December, to be released by cargo surveyors on Monday, for more trading cues.—Reuters