KUALA LUMPUR, Feb 15: Malaysian crude palm oil futures rose 2.7 per cent to a new high on Friday as China rushed to lock in supplies, while the global appetite for vegetable oils was underlined by a surge in Malaysia’s palm exports.

Palm oil, used in products from margarine and lipstick to biofuels, has been driven by rising crude oil and record soyaoil prices and on plans by Indonesia, the world’s largest producer, to hike export taxes.

Prices were given extra impetus by news that 40 per cent of China’s planted rapeseed acreage was damaged by harsh winter weather, with the extra demand helping boost Malaysia’s palm oil exports by 53 per cent on the month in the first half of February.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange rose as much as 93 ringgit to hit a record of 3,544 ringgit ($1,101) a ton. The contract closed up 33 ringgit at 3,484 ringgit per ton as weekend profit-taking wiped out some of the gains.

Exports of Malaysian palm oil products for Feb. 1-15 surged 53 per cent to 603,389 tons from 394,395 tons shipped between Jan. 1 and 15, cargo surveyor Intertek Testing Services said.

Last month, Malaysian palm exports were on a downtrend as buyers across Asia and Middle East held back purchases. Traders now say that vegetable oil reserves in countries like Turkey are falling and need to be replenished.

The record palm oil stock levels will more than cover all this demand and by end-February, it might be a different scenario of roaring demand and lesser supplies. Shares of Malaysian planters IOI Corp and Kuala

Lumpur Kepong fell as investors took profit, dealers said. The stock market’s plantation index fell more than 1 per cent, outpacing a 0.62 per cent fall in the overall index.

Refined palm oil futures in China’s Dalian Commodity Exchange gained with the most-active May contract surging 2.6 per cent to 10,718 yuan per ton.

In Malaysia’s physical market, crude palm oil for February shipment in the southern region were quoted at 3,500/3,510 ringgit a ton. Trades were done at 3,510 ringgit.—Reuters