KUALA LUMPUR, June 6: Malaysian crude palm oil futures jumped almost 3 per cent to hit a one-week high on Friday, lifted by stronger crude prices that gave vegetable oil markets from the United States to China a shot in the arm.

But quick profit-taking weighed on prices, given slow overseas demand and rising production, traders said.Palm oil, used in products from soaps to biofuel, is about 19 per cent off the record high of 4,486 ringgit a ton hit in early March, but it has gained 18 per cent so far this year.

The benchmark August contract on the Bursa Malaysia Derivatives Exchange rose as much as 100 ringgit to 3,628 ringgit ($1,114) per ton, a level unseen since May 28. The contract then settled up 72 ringgit at 3,600 ringgit.

Strong resistance was seen above 3,600 ringgit levels both in the physical and futures market and palm oil took cues from a stronger overnight CBOT and crude oil, said a trader with a local commodities broker.

Other traded months rose between 30 and 96 ringgit. Overall volumes stood at 7,798 lots of 25 tons each.

Although palm oil is still the cheapest vegetable oil, demand has been slackening. Data from cargo surveyors show exports for May fell about 6 per cent to below 1.25 million tons.

But traders have said the second quarter is traditionally a slow period for Asian demand as there are no festivals around the corner.

Oil rose by more than $2 a barrel to above $130 on Friday, extending large gains in the previous session as the US dollar weakened on signals the European Central Bank may raise interest rates this year.

Soyoil for July delivery at the Chicago Board of Trade rose 1.4 per cent in Asian trade on Friday, extending strong gains made the day before. The most active September soyaoil contract in China’s Dalian Exchange jumped 2.6 per cent.

In Malaysia’s cash market, crude palm oil for June shipment in the southern region was quoted at 3,600/3,620 ringgit. Trades were done at between 3,600 and 3,620 ringgit.—Reuters