KUALA LUMPUR, Dec 11: Malaysian crude palm oil futures edged higher on Tuesday on fears that heavy rains and flooding in key palm growing areas could limit harvesting activities.

Market participants largely ignored data from industry regulator Malaysian Palm Oil Board, which showed November palm oil reserves rising to a record high of 1.81 million tons.

The benchmark February contract on the Bursa Malaysia Derivatives Exchange settled up 12 ringgit at 2,880 ringgit ($870) a ton, after going as high as 2,898 ringgit.

The numbers from the palm oil board were definitely bearish but that is what has already happened. Now everyone is looking at floods and rains, a trader said. “The flooding could hit production if the situation worsens.

Malaysia’s southern Johor, central Pahang and northern Kelantan states have experienced heavy monsoon rains in the past few days with some areas getting flooded.

Plantation officials said heavy rains have slowed down harvest and transportation of the edible oil, which is used in products ranging from shampoo and ice-cream to biofuels.

Other traded months rose between 10 and 51 ringgit in an overall trade of 6,790 lots of 25 tonnes each.

The palm oil market, which has increasingly tracked crude oil and soybean oil prices in recent weeks, is now 6.1 per cent off the record high of 3,068 ringgit hit at the end of November.

Palm oil is up more than 44 percent this year and exports have remained rather steady for the first ten days of December.

Cargo surveyor Intertek Testing Services said palm exports fell 1.2 per cent to 449,543 tons while Societe Generale de Surveillance reported a 0.6 per cent increase at 432,315 tons.

In Malaysia’s physical market, crude palm oil for December shipment in the southern region were quoted at 2,900/2,910 ringgit a ton. Traders were done at 2,900 ringgit a ton.—Reuters