- Palm hits highest level since Jan. 24.
- Spread between palm and soy oil and sun oil widening –broker.
- Sept. 1-15 exports likely up 10-12%.
KUALA LUMPUR: Malaysian palm oil futures rallied more than 3% to their highest in over seven months on Monday, tracking strength in rival oils and hopes of improving exports in September.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed up 82 ringgit, or 2.92%, at 2,893 ringgit ($698.12) a tonne.
Palm rose to an intraday high of 3.45%, touching its highest since Jan. 24.
"Palm oil prices are seen trading sharply up as bullish soy oil and sunflower oil markets have opened a window of opportunity for palm oil to manoeuvre higher," said Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil broker.
The widening spread among palm and soy oil and sunflower oil could see palm gaining market share in top buyers India and China, he added.
Exports from Malaysia, the world's second largest producer, in Sept. 1-15 is expected to rise between 10% and 12%, traders said.
Cargo surveyors are expected to release data on export volume on Tuesday.
Dalian's most-active soyoil contract gained 3.35%, while its palm oil contract rose 4.08%. Soyoil prices on the Chicago Board of Trade were up 1.31%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil companies, which have faced criticism in recent years of widespread deforestation, said on Monday that ensuring sustainability across the supply chain was the new business norm as scrutiny on responsibly produced palm oil mounts.