SINGAPORE, April 3: Malaysian palm oil futures touched their highest in more than a year on Tuesday, riding on the back of a smaller soybean crop and recovering palm oil exports, but ended the day almost flat.

Prices touched a high of 3,566 ringgit, a level unseen since March 9 last year, driving traders to book profit, and erasing gains after the midday break.

Benchmark June palm oil futures on the Bursa Malaysia Derivatives Exchange eased 1 ringgit to close at 3,532 ringgit ($1,160) per ton.

Traded volumes stood at around 20,406 lots of 25 tons each, slightly lower than the usual 25,000 lots.

Malaysian palm oil will gain further to 3,590 ringgit as it has cleared a resistance at 3,528 ringgit, Reuters market analyst Wang Tao said.

The US Department of Agriculture said farmers would plant 2pc less of the soybean crop than expected, reinforcing the view that global supply of oilseeds is tightening, lifting palm oil futures to gain close to 11pc this year.

Export demand for palm oil has been picking up in Malaysia after four straight months of declines. March palm oil exports rose 4.8pc. —Reuters