KUALA LUMPUR, April 3: Malaysia's crude palm oil futures ended 1.2 per cent higher on Tuesday to new eight-year highs, boosted by strong gains in the soybean oil market.

The benchmark third-month June contract on the BursaMalaysia Derivatives Exchange finished up 25 ringgit, or 1.2 per cent, at 2,086 ringgit ($603) a ton, a level not seen since January 1999.

The contract hit an intra day high of 2,103 ringgit.

The market has picked up due to soybean oil, which is strong as soybean acreage is getting reduced in the United States, one dealer said.

Other contracts rose between 25 and 42 ringgit, in overall trade of 15,467 lots of 25 tons each.

Malaysian palm oil usually follows the US soyaoil market because both commodities are used in products ranging from food and cosmetics to biodiesel.

Malaysian palm oil prices soared 40 per cent last year on the back of biodiesel demand and the market is forecast to rise around 20 per cent this year.

In the physical market, crude palm oil for April shipment in the southern region was quoted at 2,105/2,115 ringgit a ton.

Deals were done between 2,100 and 2,110 ringgit.

Exports of Malaysian palm oil products for March 1-31 rose 15.8 per cent to 991,550 tons from 856,192 tons shipped in February, cargo surveyor Intertek Testing Services said.

Another cargo surveyor, Societe Generale de Surveillance, said palm exports rose 16.3 per cent to 998,759 tons during the month from 858,485 tons in February.—Reuters