• The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed up 113 ringgit, or 5.21pc, to 2,280 ringgit ($524.74), its highest close since April 10, 2020.
  • The country's exports for May 1-25 rose between 5.1pc and 9.8pc from the month before, cargo surveyors said.

KUALA LUMPUR: Malaysian palm oil futures closed at their highest in more than a month on Wednesday, following a long Eid holiday, as cargo surveyors' data showed higher exports, while forecasts of a lower output also aided sentiment.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange closed up 113 ringgit, or 5.21pc, to 2,280 ringgit ($524.74), its highest close since April 10, 2020.

During the session, the contract jumped as much as 6pc.

The Southern Peninsular Palm Oil Millers Association estimated Malaysia production in May 1-25 to fall 6pc from the month before, traders said.

The market had slid last week on worries of higher May production after the Malaysian Palm Oil Association estimated a 11.8pc monthly rise.

“The production number is key as it will determine the end-May palm oil inventories in Malaysia," said Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil broker.

The country's exports for May 1-25 rose between 5.1pc and 9.8pc from the month before, cargo surveyors said.

Exports, estimated to have crossed 1 million tonnes for the period by surveyors Intertek Testing Services and AmSpec, could rise to 1.3 million-1.35 million tonnes for the entire month, said Bagani.

Also helping prices was an upbeat forecast by the industry regulator Malaysian Palm Oil Board which said crude palm oil prices may rise to 2,300-2,400 ringgit ($528.37-$551.34) per tonne in the coming months as the country's relationship with top importer India improves.

Dalian's most-active soyoil contract rose 0.99pc, while its palm oil contract gained 1.01pc. Soyoil prices on the Chicago Board of Trade were up 1.32pc.

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