KUALA LUMPUR, Jan 4: Malaysian crude palm oil futures hit a two-month high on Wednesday on the back of a rally in U.S. soyaoil, but profit-taking trimmed gains by the close.

The benchmark third-month crude palm oil position on Bursa Malaysia Derivatives, March,, settled up 8 ringgit at 1,437 ringgit ($381.07) a ton.

It earlier peaked at 1,446 ringgit, the highest since Nov. 2.

If the momentum in soyaoil keeps up, 1,450 will be support soon for palm oil, said a trader.

January soyaoil closed up 1.66 cents per lb at 22.96 cents — above its 200-day moving average.

But the contract lost part of the gains in Wednesday’s electronic trading conducted during Asian hours, causing palm oil to pare its advances.

Wednesday’s low for March palm oil was 1,434 ringgit — 12 ringgit off the high.

Other traded months settled up 8 to 9 ringgit.

Volume was heavy at 6,624 lots of 25 tons each.

In the physical market for crude palm oil, offers/bids for January stood at 1,425/1,420 ringgit a ton. Trades were done at 1,417.50-1,420 ringgit.—Reuters