KUALA LUMPUR: Malaysian palm oil futures jumped more than 2% on Tuesday, boosted by stronger crude and competing soyaoil prices amid reports of higher April 1-20 exports.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange closed up 94 ringgit, or 2.53%, at 3,804 ringgit ($924.87) a tonne, recovering from a 0.8% drop earlier in the session.

Data released by cargo surveyors Malaysia showed exports of Malaysian palm oil products during April 1-20 rose between 10% and 12.7% from a month earlier.

However, the rise in shipments was slightly lower-than-expected, traders said. A worsening coronavirus outbreak in India, the world’s biggest edible oil buyer, also dampened optimism for a sustained rise in demand.

In the European Union, the third-biggest buyer of Malaysian palm oil, imports of the tropical oil were at 4.23 million tonnes in the 2020/21 season, compared with 4.55 million tonnes a year ago, data published by the European Commission showed.

The Malaysian market was trading sideways with the most current bullish news already priced in, said a Kuala Lumpur-based trader.

Dalian’s most-active soyaoil contract rose 1.3% and its palm oil contract was up 1.8%. Soyaoil prices on the Chicago Board of Trade advanced 0.8%.

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

Oil prices rose as a weaker US dollar supported commodities and on expectations that crude inventories fell in the United States. Stronger crude oil futures makes palm oil a more attractive option for biodiesel feedstock.