KUALA LUMPUR: Malaysian palm oil futures rose to a one-month high on Monday, lifted by gains in US and China soyoil markets and a surge in exports of the tropical oil in the first half of the month.

Overseas shipments of Malaysian palm oil between Sept 1 and Sept 15 rose 32 per cent to 750,425 tonnes compared with the same period a month ago, data from cargo surveyor Intertek Testing Services showed.

Demand for crude palm oil more than doubled, while imports for palm oil products from Europe and India surged, the data showed.

The strong recovery comes after Malaysia removed export taxes for the crude grade for September and October. Another cargo surveyor Societe Generale de Surveillance reported that exports for the same period rose 34pc.

The benchmark November contract on the Bursa Malaysia Derivatives Exchange rose to 2,124 ringgit in early trading, the highest level since Aug 15. Total traded volume stood at 76,335 lots of 25 tonnes, more than double the usual 35,000 lots.

Technical showed that a bullish target at 2,142 ringgit per tonne remains unchanged for palm oil, as indicated by its wave pattern and a Fibonacci retracement analysis, said Reuters market analyst Wang Tao.

Published in Dawn, September 16th, 2014