KUALA LUMPUR: Malaysian palm oil futures extended gains to hit their highest in three weeks on Wednesday after better-than-expected economic data from China soothed fears about slowing demand from the world’s second-largest consumer of the tropical oil.

The benchmark July contract on the Bursa Malaysia Derivatives Exchange hit an intraday high of 2,691 ringgit a tonne, its highest since March 27, before standing at 2,685 ringgit ($828) by Wednesday’s close, up 1.4 per cent.

“The data offers some comfort to investors who have been worrying over Chinese economic slowdown. Going forward, I think the concern is whether prices will able to hold above 2,650 ringgit in a sustainable fashion,” said Phillip Futures analyst Tan Chee Tat.

“It hasn’t been able to make a convincing breakthrough.” Technicals showed that Malaysian palm oil may extend its gain to 2,703 ringgit per tonne as it has cleared a resistance at 2,653 ringgit, said Reuters market analyst Wang Tao.

In competing vegetable oil markets, the US soyoil contract for May rose 0.8pc in late Asian trade, while the most active September soybean oil contract on the Dalian Commodities Exchange added nearly 1pc.