KUALA LUMPUR, Aug 29: Malaysian crude palm oil futures soared 6.1 per cent on Friday, clawing back heavy losses earlier in the week, as strength in crude oil markets boosted global vegetable oil prices, traders said.

Chicago soyaoil gained 1.2 per cent in Asian trade while Dalian soyaoil for January 2009 delivery jumped 2.4 per cent following oil’s $1-plus leap ahead of Tropical Storm Gustav in the United States.

Palm oil has dropped about 14 per cent this year as high stocks and news of defaults from key buyers India and China has kept traders on tenterhooks.

The benchmark November contract settled up 150 ringgit to 2,620 ringgit ($772) per ton.

Traders are short-covering ahead of the long weekend. The feeling is that crude oil will surge in the next few days and bring all the other vegetable oil markets with it, said a leading trader.

Malaysian financial markets will be closed on Monday to mark Independence day, which falls over the weekend.

Other traded months rose between 65 and 135 ringgit.

Overall volume stood at 12,797 lots of 25 tons each. But other traders said the market may fall further next week as demand shows some signs of cooling off amid forecasts that the high palm oil production cycle will continue way into November.—Reuters