KUALA LUMPUR: Malaysian palm oil futures rallied more than 5 percent on Monday to hit a more than three-month high, tracking a sharp rally in rival soyoil on concerns over smaller US planting and inventories.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange closed up 196 ringgit, or 5.17%, to 3,985 ringgit ($854.23) a metric ton. The contract rose for a third session to its highest closing since March 15.

Palm oil is getting a much-needed support from soy oil amidst slower exports from Malaysia and some uptick in production since May, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

Exports of Malaysian palm oil products for June fell 6.9%, cargo surveyor Intertek Testing Services said on Friday. Another cargo surveyor, AmSpec Agri Malaysia, said exports rose 0.6%.

The US Department of Agriculture (USDA) on Friday reported much lower-than-expected 2023 soy plantings and June 1 inventories, raising concerns over world supplies and triggering a rally in soybean and soyoil prices.