KUALA LUMPUR: Malaysian palm oil futures jumped as much as 6.5% on Monday, recouping some losses from last week, supported by gains in rival oils and mill closures, although weak exports in June so far weighed on sentiment.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed 256 ringgit higher, or 5.49%, at 4,920 ringgit ($1,117.42) a tonne.

Palm declined 14.5% last week, effectively giving up most of the gains for this year so far. The contract had rallied earlier this year due to a global edible oil shortage after Russia’s invasion of Ukraine disrupted supplies of sunflower oil.

For the month, palm has plummeted 21.9% so far, the most in more than 13 years, since the 2008 financial crisis.

Palm slumps 15% for the week on rising output outlook, soy oil declines

Palm gains follow the rise in Chicago soyoil on Friday night, a Kuala Lumpur-based trader said.

“News of some mills closure in Peninsular Malaysia added to buying momentum,” he added.

Some palm oil millers in Malaysia have temporarily stopped production after prices of the edible oil plunged dramatically last week, Steven Yeow, Northern President of Malaysian Palm Oil Millers Association (POMA) told Reuters.

Exports of Malaysian palm oil products for June 1-25 fell between 13% and 19.6% from the same period in May, according to cargo surveyors on Saturday.

Meanwhile, Germany does not expect its proposal for a temporary waiver on biofuel mandates to get agreement from the Group of Seven leading industrialized democracies due to resistance from the United States and Canada, a German government source said.

Dalian’s most-active soyoil contract rose 0.5%, while its palm oil contract fell 1%. Soyoil prices on the Chicago Board of Trade gained 0.7%, after rising 1.7% in the previous session.

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