KUALA LUMPUR: Malaysian palm oil futures hit a near two-week high on Wednesday, marking a second straight day of gains amid an uncertain production outlook and forecasts for a soyoil rally.

Palm oil production typically rises in March from February. However, industry players are uncertain about how much production will pick up this month as palm oil trees still face the brunt of a crop-damaging El Nino, which reduces yields of fresh fruit bunches.

Benchmark palm oil futures for June delivery on the Bursa Malaysia Derivatives Exchange closed up 0.7 per cent at 2,829 ringgit ($639) a tonne. Earlier in the session, they hit 2,839 ringgit a tonne, their highest since March 9.

Traded volumes for the day totalled 40,762 lots of 25 tonnes each. Also supporting palm oil were expectations for a rise in soyoil prices after 2017 US biofuel requirements came into effect.

Published in Dawn, March 23rd, 2017