KUALA LUMPUR, July 17: Malaysian crude palm oil futures closed sharply higher on Monday, boosted by strong exports and higher prices of crude oil, traders said.

Exports of Malaysian oil palm products for July 1-15 stood at 520,036 tons, up 6.9 per cent from 486,593 tons shipped between June 1 and 15, cargo surveyor SGS said at the weekend.

Another cargo surveyor, Intertek Testing Services, also said Malaysia’s palm products exports during the first half of the month rose 4.6 per cent from 525,184 tons shipped from June 1 to 15.

Exports have shown good improvement and there is fear of crude oil prices going up further, one dealer said. The market is expected to remain firm.

The benchmark third-month October contract on the Bursa Malaysia Derivatives closed up 24 ringgit at 1,541 ringgit ($418) a ton.

Overall volumes rose to 12,922 lots of 25 tons each compared with 10,180 lots traded on Friday.

The palm oil market sometimes tracks energy prices as Malaysia moves closer to October’s launch of palm-based biodiesel at the domestic pumps.

In the physical palm oil market, crude palm oil for July shipment saw sellers at 1,465 ringgit a ton and bids at 1,460. Trades were done at 1,455 ringgit a ton.—Reuters