SINGAPORE, July 3: Malaysian crude palm oil futures touched the highest in five weeks on Tuesday, as a US crop report cutting soybean crop condition ratings cemented market views of a tighter global oilseed supply.Extreme hot and dry weather has taken a toll on the US soybean crops with the U.S. Department of Agriculture (USDA) on Monday slashing its condition rating at 45 percent good-to-excellent, compared with 53 percent a week ago.

“The weather issue is still in play and we have a positive sentiment on demand as Ramadan is coming closer,” said Ker Chung Yang, commodities analyst with Phillip Futures in Singapore, referring to the Muslim fasting month that begins in end-July.

“Traders are also positioning ahead of the MPOB (Malaysian Palm Oil Board) data next week on stocks and output.” Benchmark September palm oil futures on the Bursa Malaysia Derivatives Exchange gained 1.2 percent to close at 3,124 ringgit ($992) per ton. Prices earlier went as high as 3,130 ringgit, a level not seen since May 30.—Reuters