KUALA LUMPUR: Malaysian palm oil futures rose more than 1 per cent on Tuesday and hit its highest level in six weeks, tracking gains in US soyoil in Chicago and supported by prospects for an easing of production.

The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange closed 1.5pc higher at 2,153 ringgit ($516) a tonne. It earlier climbed to 2,158 ringgit, its highest level since Nov 1. Trading volumes totalled 56,071 lots of 25 tonnes each.

“The market is higher tracking US soyoil,” said a Singapore-based trader, adding that the market was also supported by easing production trends. Palm oil production typically tapers off at the year-end after peaking between August and October. Malaysian output in November fell 6pc to 1.85 million tonnes, down from the year’s peak output levels of 1.96m tonnes in October.

Published in Dawn, December 19th, 2018