KUALA LUMPUR: Malaysian palm oil futures jumped on Tuesday to their highest close in almost seven weeks, helped by a weakening ringgit and concerns over global edible oil supply.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 118 ringgit, or 3.04%, to 4,005 ringgit ($849.60) a tonne.

The contract rallied for the third consecutive session and marked its highest close since Sept. 1.

The weaker ringgit along with fears of floods hitting production in Malaysia are keeping prices elevated, said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

“There are also worries that escalating Russia-Ukraine tensions may limit sunflower oil shipments from Ukrainian ports, which may channel demand to alternatives including palm oil,” he said.

Palm rises for second day on U.S. soyoil strength

The ringgit, palm’s currency of trade, has fallen to its lowest since 1998, making the commodity cheaper for buyers holding other currencies.

India is examining whether there is a need to raise palm oil import taxes, government and trade sources said, as part of efforts by the world’s biggest vegetable oil importer to help millions of its farmers reeling from lower oilseed prices.

Dalian’s most-active soyoil contract gained 0.2%, while its palm oil contract rose 3.4%. 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.

Palm oil may break a resistance at 3,924 ringgit per tonne and rise into 3,958-4,001-ringgit range, Reuters technical analyst Wang Tao said.