KUALA LUMPUR: Malaysian palm oil futures closed at an eight-month high on Thursday, after climbing as much as 3% tracking gains in Dalian oils and on increased demand from China ahead of a key festival week.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange closed up 67 ringgit, or 2.30%, at 2,976 ringgit ($719.36) a tonne, its third consecutive session of gains. Earlier in the session, it rose 3.06% to 3,002 ringgit, its highest since Jan. 15.
The market was closed on Wednesday for a public holiday.
"Dalian and (soya) bean oil moved up strongly last night, that's why palm oil moved up," said a Kuala Lumpur-based trader.
China, the world's second-largest palm buyer, has increased buying ahead of the Mid-Autumn Festival and Golden Week - a week-long holiday starting from Oct. 1, he added.
Malaysia's palm oil exports during Sept. 1 to 15 rose 12% from the month before, according to data released by cargo surveyors.
Dalian's most-active soyaoil contract gained 2.72%, while its palm oil contract rose 1.96%. Soyaoil prices on the Chicago Board of Trade were up 0.54%.
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