KUALA LUMPUR, April 22: Malaysian palm oil futures rallied to end at a three-month high on Monday, lifted by a crop report, firmer Chicago soyaoil futures and a stronger rupiah, traders said.

There was a combination of positive factors. We had firmer soyaoil futures, a stronger rupiah and then a friendly crop report from Ivan Wong, said a trader. So the rally was not surprising.

Private crop forecaster Ivan Wong projected Malaysia’s palm oil output to fall to 860,000-865,000 tons in April from 892,600 in March.

Wong forecast end-April stocks at 1.06-1.07 million tons, down from 1.17 million at end-March.

The benchmark third-month futures contract closed up 35 ringgit at 1,236 ringgit ($325.26) a ton, its highest since January 23.

Traders said the contract could be heading for its next target of 1,250 ringgit after breaking 1,220 resistance.

Overall volume swelled to 2,791 lots from Friday’s 940.

The rupiah rose to a seven-month high of 9,230/9,250 to the dollar in late Monday trade.

Indonesia is the world’s second largest palm oil producer after Malaysia, and a strengthening currency makes its palm oil products less competitive versus Malaysian material.

Traders said export figures for the first 20 days of April were also encouraging although they were lower than last month’s.

Cargo surveyor Societe Generale de Surveillance (SGS) said Malaysian palm oil exports for April 1-20 stood at 588,438 tons, down from 613,367 in the first 20 days of March.

Dealers were expecting April exports of up 950,000 tons, above the 890,705 officially recorded for March.

In the United States, Chicago Board of Trade soya product futures ended firm on Friday on hopes for export sales and ideas a new US farm bill would reduce incentives to plant soya.

In physical trading of palm oil, the April contract for the southern and central regions saw offers at 1,220 ringgit a tonne against bids at 1,210. Trade was reported earlier at 1,205.

The May contract for both south and central was asked/bid at 1,225/1,220 ringgit and reportedly traded from 1,210 to 1,220.—Reuters