Palm oil hits near 2-week high on signs of higher exports, lower output

KUALA LUMPUR: Malaysian palm oil futures rose to a near two-week high on Wednesday, tracking bullish rival Dalian oils and on signs of shrinking output and rising exports in April.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange gained 57 ringgit, or 1.5%, to 3,859 ringgit ($935.74) during early trade.

Palm extended gains for a third straight day to its highest since March 25.

Southern Peninsula Palm Oil Millers' Association (SPPOMA) pegged production during April 1-5 to decline 6% month-on-month, traders said on Tuesday.

Meanwhile, exports from Malaysia during the same period rose 10.6% from March, Intertek Testing Services said.