KUALA LUMPUR: Malaysian palm oil futures were unchanged on Wednesday, as speculation over rising production and stronger exports pulled prices in both directions in a volatile day of trade.

The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange had earlier touched an intraday high of 1.6%.

"Slowly but surely production is gathering traction," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

On Monday, the Malaysian Palm Oil Board reported a higher-than-expected 28% monthly rise in March production, indicating a recovery in output after six months of decline.

Investors now await April 1-15 export data from cargo surveyors scheduled to be released on Thursday, but are expecting a 13% monthly jump in shipments.

However, market players are facing some delays in shipments due to a shortage of shipping containers and skyrocketing freight charges, Paramalingam said.

Palm oil imports in India, the world's largest edible oil buyer, jumped 57% year-on-year as refiners increased purchases of the tropical oil to reduce expensive sunflower oil imports.

Top producer Indonesia expects to consume 9.6 million kilolitres of biodiesel in 2022, higher than the 9.2 million kilolitres targeted for this year, official data showed on Wednesday.

Dalian's most-active soyoil contract rose 1.6%, while its palm oil contract gained 1.7%. Soyoil prices on the Chicago Board of Trade were up 0.1%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Crude rose over 1% after industry data showed US oil inventories declined more than expected and OPEC raised its outlook for oil demand.

Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.