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KUALA LUMPUR: Malaysian palm oil futures ended 4% higher on Wednesday to hit a record peak of 4,524 ringgit ($1,096.20) a tonne, helped by concerns of tight global edible oil supply and on trader positioning ahead of a key US report for grains and soyabeans.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange ended higher by 174 ringgit at the midday close.

The contract extended last week’s rally to notch a 2.2% weekly rise.

The Malaysian bourse will remain closed for Eidul Fitr celebrations, and resume trade on May 17.

Palm oil surged in unison with Chicago Board of Trade and the Dalian Exchange, and prices were defensive as May output could rise marginally due to lack of manpower to harvest, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

“The situation is so tight that refiners are buying back olein in the market to fulfill their sales obligation, with crude palm oil arrivals from the millers grinding to a halt,” he added.

Traders are now expecting the World Agricultural Supply and Demand Estimates report due later in the day to show a supply squeeze until 2022.

The US Department of Agriculture (USDA) will give its first global outlook for grains and soyabeans in 2021/22 and update its 2020/21 estimates in the report.

Palm oil is also being supported by a rally in the global agricultural market, led by Chicago corn and soyabean futures, which are trading at multi-year highs.

Dalian’s most-active soyaoil contract and its palm oil contract both advanced 3%. Soyaoil prices on the Chicago Board of Trade were up 1.4%.

The edible oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market. Palm oil is poised to break a resistance at 4,436 ringgit per tonne and rise into a range of 4,494 ringgit to 4,556 ringgit, Reuters technical analyst Wang Tao said.