KUALA LUMPUR, Nov 23: Malaysian crude palm oil futures rose 1.7 per cent on Friday to strike a record high as investors rushed to cover positions after rival soyaoil prices surged in Asian trade and talk of rising exports.

Palm oil, up nearly 53 per cent this year, has been driven by a heady blend of strong crude and soyaoil markets, roaring demand and an expected supply shortfall.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange rose 52 ringgit to settle at a new record of 3,044 ringgit ($906) per ton. It’s massive shortcovering on the account of soyaoil and even at these high palm prices, there is talk of good export numbers for next week, said a trader with a foreign brokerage.

Other traded months rose between 8 and 57 ringgit. Overall trade stood at 10,722 lots of 25 tons each.

Chicago Board of Trade soyaoil futures were closed on Thursday for the US Thanksgiving holiday.

In electronic trading during Asian hours on Friday, the December soyaoil contract rose nearly 1 per cent to 46.40 cents per lb at 1100 GMT.

Palm oil and soyaoil are used in products, ranging from cosmetics and confectionaries to biofuel, and their prices often move in tandem.

Despite the red-hot palm oil prices, exports have not quite diminished with export numbers for Nov 1-20 keeping momentum.

And traders expect exports to be much better at the end of November on the account of advance buying of cargoes ahead of the Muslim festival Eid al-adha and Christmas, both due in December.

February palm oil on Singapore’s Joint Asian Derivatives Exchange was untraded.

In Malaysia’s physical market, crude palm oil for November shipment in the southern region was quoted at 3,020/3,030 ringgit a ton. Trades were done at 3,000 and 3,020 ringgit.—Reuters