KUALA LUMPUR: Malaysian palm oil futures surged nearly 2 percent on Tuesday evening, tracking gains in related edible oils and on prospects of reduced stockpiles because of higher exports.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange was up 1.9 percent at 2,153 ringgit ($527.31) a tonne at the close of trade, its highest for a week.
The contract also registered its sharpest daily gain since Jan. 3 and a second straight session of gains.
"Palm took cues from overnight gains in soybean oil futures," said one Kuala Lumpur-based futures trader, adding that March export data from cargo surveyors also supported the market.
"Exports are good, it is possible that end-stocks will reduce."
Cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia on Monday said that Malaysia's palm oil exports in March rose about 22 percent from the previous month.
Another cargo surveyor, Societe Generale de Surveillance, reported a monthly rise of 28.1 percent.
Strong gains in exports could help to reduce stockpiles in Malaysia, which rose to their highest in nearly two decades in December. Stocks had risen unexpectedly in February, by 1.3 percent to 3.05 million tonnes. <MYPOMS-TPO>
Official March data from the Malaysian Palm Oil Board is scheduled for release on April 10.
In related oils, the Chicago May soybean oil contract gained 0.7 percent on Monday on optimism about a trade deal with China after the US Agriculture Department said private exporters reported the sale of 828,000 tonnes of soybeans to China. It was last up 0.5 percent on Tuesday.
Meanwhile, the May soyoil contract on the Dalian Commodity Exchange edged up 0.3 percent and the Dalian May palm oil contract rose 1.1 percent.
Palm oil prices are affected by movements in soyoil, which competes for a share in the global vegetable oil market.
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