BANGKOK, Sep 16: Malaysia’s palm oil futures rose on Friday on expectations of strong overseas demand and talk that India may reduce import duties on edible oils, dealers said.

Malaysia is the world’s largest palm oil producer and exporter.

The benchmark December crude palm oil contract on Bursa Malaysia Derivatives rose 8 ringgit to 1,399 ringgit a ton ($371.18 a ton).

The day’s high was 1,404 ringgit and the low was 1,387. Other traded months settled 5-20 ringgit higher.

Overall volume was quite high at 7,680 lots of 25 tons.

We have festival seasons coming in in the next two months.

September usually marks the start of one of the busiest periods in shipments of palm oil, when Pakistan, the Middle East and India import more to make special food and cakes for the Ramazan.

There was a rumour in the market that India would reduce import duties on edible oils, including palm oil and soyaoil, they said. Volume was quite good today. I think the market will go up steadily and try above 1,400 ringgit next week, said one dealer. —Reuters