Malaysian crude palm oil futures ended 1.8 percent higher in light trade on Friday due to surging soyaoil prices, while market participants awaited June export numbers. The benchmark September contract on the Bursar Malaysia Derivatives Exchange settled up 44 ringgit at 2,427 ringgit ($704) a tonne.
"Soyabean oil has been stabilising at higher prices and this bodes well for palm oil," said a trader. "There is some short covering ahead of the weekend because players are slowly realising that export data for this month is not that bad."
Cargo surveyor Interlake Testing Services will release June's export numbers on Saturday, while Society General de Surveillance will release its data on Monday.
Other traded months rose between 33 and 56 ringgit. Overall trade fell to 7,292 lots of 25 tonnes each from around 12,000 lots that usually change hands on a routine day.
But palm oil is more than 12 percent off a historic high of 2,764 ringgit reached this month as worries of a stock build-up due to weakening exports persist. September palm oil on Singapore's Joint Asian Derivatives Exchange rose 1.6 percent to $700.25 a tonne with distant months also posting gains in thin trade.
Soyaoil futures on the Chicago Board of Trade rallied strongly on Thursday due to strong fund buying. July soyaoil settled 0.61 cent per lb.
Firmer at 35.57 cents. The back months closed 0.43 to 0.60 cent higher. In electronic trading during Asian hours, the July contract jumped 1.91 percent to 36.25 cents a lb. Soyaoil usually lends support to the palm oil market due to common use in products ranging from lipstick to confectionery and bifocals.
In Malaysia's physical market, crude palm oil for June and July shipments in the southern region was quoted at 2,530/2,540 ringgit a tonne. Trades were done between 2,520 and 2,530 ringgit.
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