KUALA LUMPUR, Jan 14: Malaysian crude palm oil futures gained nearly 3 per cent on Wednesday after posting sharp losses the previous day, as some investors returned to global vegetable oil markets on weather-related fears.

Palm oil, used in chocolate to biofuels, has jumped 42 per cent since an Oct 28. low of 1,331 ringgit on falling stocks and increased shipments in December.

However, traders expect Malaysian palm oil export data for Jan. 1-15, due to be released by cargo surveyors on Thursday, to fall further as some buyers slow purchases.

The benchmark March contract on the Bursa Malaysia Derivatives Exchange traded up 54 ringgit at 1,884 ringgit ($528.2) a ton after going as high as 1,894 ringgit.

Other traded months rose between 2 and 35 ringgit.

Overall trade stood at 7,559 lots of 25 tons each, falling from the usual 10,000 lots.

There is still oversupply in markets, many countries have overbought, said another trader.

In Indonesia, the world’s largest palm oil producer, the state marketing centre said it sold 5,500 tonnes of crude palm oil out of 7,500 tons it offered, at a top price of 6,329 rupiah ($0.57) per kg, up from 6,239 rupiah on Tuesday.

Producers in Medan -- home to Belawan port, Indonesia’s key port for palm oil exports -- did not hold a palm oil tender on Wednesday. They sold palm oil at 6,175-6,220 rupiah per kg the previous day.

Meanwhile, refiners in Jakarta sold refined, bleached, deodorised (RBD) palm oil, used as cooking oil, at about 6,750 rupiah per kg, down from 6,850 rupiah per kg on Tuesday.

In Malaysia’s physical market, palm oil for January delivery was called at 1,860-1,880 ringgit per tonne in the southern region. Trades were done between 1,870 and 1,890 ringgit.—Reuters