KUALA LUMPUR, Oct 3: Malaysian crude palm oil futures rose more than 2 per cent after tailing a rally in US soyaoil, but profit-taking caused the market to close below Monday’s 6-= month highs.

Bursa Malaysia Derivatives’ benchmark third-month crude palm oil contract, December, ended at 1,475 ringgit ($391.35), up 15 ringgit on the day. It had surged as much as 35 ringgit in morning trade to touch 1,495 — prompting traders to think it could breach the 1,500 level last seen on March 16.

The broader market ended up 13 to 25 ringgit.

Overall volume was 7,154 lots of 25 tons each, compared with Friday’s 5,107 lots. The market typically sees 6,000 lots or more on a busy day.

Palm oil prices have been on an uptrend since Friday, with December futures closing up 12 ringgit after speculation of strong exports in coming months as Europe’s demand for biofuels grow.

Malaysia, the world’s top oil palm grower, hopes to produce enough palm diesel in the future to cash in on the burgeoning demand for green fuels as crude oil prices continue to spike.

Palm oil dealers said rapeseed was the biggest source of biofuel in Europe currently and palm was supplementing the region’s edible oil needs.

Offer prices of physical crude palm oil also closed up about 25 ringgit a ton, in line with the trend in futures.

Physical crude palm oil for October saw offers at 1,485 ringgit a ton and bids at 1,480 in the southern region of Malaysia at the close. In the central region, offers/bids stood at 1,485/1,475.

Trades closed at 1,480 ringgit in the south and 1,480-1,477.50 in the central zone.—Reuters