KUALA LUMPUR, March 25: Malaysian crude palm oil futures rose 4.8 per cent on Tuesday as investor confidence gathered strength on rising prices of rival soyaoil and solid demand for vegetable oils, traders said.

The market moved higher in the afternoon session after Indonesia raised its export taxes for palm oil.

The benchmark June contract on the Bursa Malaysia Derivatives Exchange rose as much as 161 ringgit to 3,501 ringgit ($1,096) per ton before settling at 3,500 ringgit.

Palm oil has fallen 22 per cent from historic highs of 4,486 ringgit hit earlier this month.

The market has priced in the anticipated increase in Indonesian export taxes but some players may want to go long because they expect a sharp increase, said S. Paramalingam, executive director of commodities brokerage Pelindung Bestari.

But it remains to be seen if this will be the start of a new rally, Paramalingam said.

Other traded months rose 110 and 270 ringgit.

Overall trade more than doubled to 20,170 lots of 25 tons each from the usual 10,000 lots.

Indonesia raised crude palm oil export taxes in April to 20 per cent, the trade ministry said in a statement on Tuesday.

The new prices will be valid from April 1 to the end of the month.

Analysts said demand for edible oils could be on the rise, led by Indian import duty cuts for crude palm oil to 20 per cent from 45 per cent.

India is now estimated to import 4.6 million tons of palm oil and 600,000 tons of soyaoil this oil year to Oct. 21, traders said.

In Malaysia’s physical market, crude palm oil for March shipment in the southern region was quoted at 3,440/3,480 ringgit a ton.

Trades were quoted at 3,450 ringgit.—Reuters