SINGAPORE, Jan 7: Malaysian palm oil futures dropped to a two week low on Monday, its third consecutive fall, as investors remained cautious ahead of the release of export data this week which will provide clues about the demand outlook for the edible oil.

Traders are eyeing shipment data for the first 10 days of January, due out on Thursday, to gauge the impact of Malaysia’s zero crude palm oil export tax.

The benchmark March contract on the Bursa Malaysia Derivatives Exchange closed 1.9 per cent down at 2,420 ringgit ($796) per ton.

Prices had earlier fallen to as low as 2,416 ringgit, a level last seen on Dec 24. Total traded volume stood at 58,065 lots of 25 tons each, more than double the usual 25,000 lots.

Technicals showed that palm oil is expected to fall further to 2,407 ringgit, as a drop from the Jan 2 high of 2,524 ringgit has yet to end, said Reuters market analyst Wang Tao.—Reuters