Jakarta. Palm oil prices extended losses on Wednesday, pressured by swelling inventories and weaker export demand, even as Indonesia ramps up efforts to secure tariff relief in key overseas markets.

Futures tracking the benchmark market fell 0.61% to MYR 3,937 a ton on Dec. 17, marking a third consecutive daily decline. Prices have dropped 6.48% over the past month and are down more than 13% from a year earlier, according to contract-for-difference trading data.

The downturn comes as Malaysian palm oil futures hover near 3,980 ringgit a ton, close to a three-week low. According to Trading Economics, a stronger ringgit and declines in rival edible oils on China’s Dalian exchange and in Chicago have weighed on sentiment. Signs of softer overseas demand have added to the pressure, with cargo surveyors estimating Malaysian palm oil exports in the first half of December fell between 15.9% and 16.4% from the previous month.

Supply-side data has reinforced the bearish outlook. Malaysia’s end-November palm oil inventories jumped 13% from the prior month to 2.84 million tons, the highest level in about 6.5 years. Full-year output is on track to exceed 20 million tons for the first time, reflecting resilient production despite recent weather disruptions. Some support came from industry data showing crude palm oil production slipped 5.3% month-on-month in November to 1.94 million tons.

Demand signals remain mixed. India, the world’s largest palm oil importer, lifted purchases by about 5% in November from October to 632,341 tons as refiners took advantage of lower prices.

Meanwhile, Indonesia is intensifying diplomatic efforts to improve market access. Chief negotiator Airlangga Hartarto said Jakarta would push for tariff cuts on palm oil in talks with US officials later this week, after Washington exempted cocoa and other agricultural products from reciprocal import taxes.

Indonesia and Malaysia dominate global palm oil supply. Between January and October, Indonesia exported nearly $1.8 billion worth of animal and vegetable fats and oils to the US, underscoring the stakes as prices remain under pressure.