KUALA LUMPUR, May 16: Malaysian crude palm oil futures rose 1.3 per cent on Friday on a strong rebound in vegoils and hopes that an industry conference in Jakarta would yield a bullish crop of news, traders said.

Palm oil futures, which have gained 17 per cent so far this year, could move higher next week on expectations the Argentine soy farmers strike will carry on for another week.

The benchmark August contract on the Bursa Malaysia Derivatives Exchange settled up 46 ringgit to 3,570 ringgit ($1,104) per ton.

There is some pre-holiday buying amid expectations that the World Palm Oil Summit in Jakarta will amplify a bullish scenario and Argentine strike will continue for at least another one week,” said one trader at a local commodities brokerage.

The May 21-23 World Palm Oil Summit and Exhibition will feature top traders and industry analysts such as Dorab Mistry and James Fry.

But other traders were more wary, saying sluggish palm oil exports could weigh on the market.

Exports are up but they are not extraordinary. In this day of higher palm oil crop cycles, we need extraordinary exports, said a trading manager with a foreign commodities broker.

Other traded months rose between 46 and 47 ringgit.

Overall trade dropped to 6,505 lots of 25 tons each from 10,000 lots that change hands on a routine trading day.

Malaysia’s crude palm oil stocks fell 1.97 per cent to 789,383 tons in April, from a revised 1,825,386 tons in March, official crop agency Malaysian Palm Oil Board said on Monday.

In Malaysia’s physical market, crude palm oil for May shipment in the southern region was quoted at 3,565/3,580 ringgit.

Trades were done between 3,540 and 3,565 ringgit.

—Reuters