KUALA LUMPUR, Sept 20: Crude palm oil futures closed higher on Tuesday, extending the previous day’s gains, after a further rally in rival US soyoil. Optimism over export performance for this month also helped sentiment although export estimates of Malaysian palm oil for September 1 to 20 came in below market expectations.

Societe Generale de Surveillance (SGS), the leading independent surveyor of Malaysian palm oil exports, said it tracked 782,157 tons of shipments for September 1 to 20, up 9 per cent from a month earlier.

The market had been expecting up to 800,000 tons.

The benchmark third-month palm oil contract on Bursa Malaysia Derivatives, December, ended up 12 ringgit, or 0.8 per cent, at 1,426 ringgit ($378.35) a ton.

The contract had risen 1 per cent on Monday, firmly crossing the 1,400 ringgit resistance, on confidence that exports for September would do far better than August after key buyer India cut its base import prices for palm oil.

Overall volume in palm oil futures totalled 7,406 lots of 25 tons each, compared with Monday’s 7,964 lots.

October Chicago soyoil futures — conducted during Asian trading hours — rose 0.26 cent to 22.98 cents per lb, extending Monday’s 0.76 cent gain.

Soyoil and palm oil compete for exports and their prices often move in step.

In physical trade, September crude palm oil saw offers at 1,425 ringgit a ton and bids at 1,415 in the southern region of Malaysia.

In the central zone, the contract was offered/bid at 1,420/1,415 ringgit.

Trades were reported at 1,410-1,415 ringgit in both southern and central regions.—Reuters