KUALA LUMPUR: Malaysian palm oil futures opened at their highest in nearly seven months on Monday and were headed for a sixth session of gains in seven, supported by strength in related edible oils.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange opened 1.7 percent higher at 2,333 ringgit and was last up 1.4 percent at 2,325 ringgit ($565.97) a tonne at the midday break.
Trading volumes stood at 11,091 lots of 25 tonnes each. <1FCPO-TOT>
"Palm is up tracking strength in the Dalian Commodity Exchange," said a futures trader from Kuala Lumpur, referring to soyoil.
Palm prices rose on Monday even though data from a millers' association showed gains in January output, as the market has "already factored in the rush to harvest ahead of festive holidays", she said.
Malaysian markets will be closed on Feb. 5-6 for the Lunar New Year celebrations.
Strong gains in US soyoil on Friday also helped palm, said another trader.
"The (millers' association) output data only shows production in Peninsular Malaysia is up," he said. The eastern states of Sabah and Sarawak are the country's top producing regions.
Palm oil may gain more to 2,351 ringgit per tonne as it has cleared a resistance at 2,322 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
Meanwhile, soyoil prices on the US Chicago Board of Trade gained 1.8 percent on Friday, supported by concerns of Brazil's crop size and short-covering ahead of planned US-China trade talks next week.
The Chicago March soybean oil contract was up 0.1 percent on Monday.
In other related oils, the May soybean oil contract on the Dalian Commodity Exchange jumped 1.8 percent, and the Dalian May palm oil contract rose 1.6 percent.
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