KUALA LUMPUR: Malaysian palm oil futures rose more than 2% on Tuesday as traders bet on lower May production amid improving exports and tracking gains in crude.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed up 52 ringgit, or 2.28%, at 2,337 ringgit ($546.67) a tonne.
Palm oil hit its highest closing price since April 9.
The market is now awaiting the release of the Malaysian Palm Oil Association's May production data and is expecting a decline from previous estimates of an 11% monthly rise, said Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil broker.
Exports in the world's second largest palm producer rose between 7% and 8.4% in May from the month before. Dalian's most-active soyaoil contract fell 0.25%, while its palm oil contract gained 0.38%.
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