04/07/2017 (The Star Online) - KUALA LUMPUR: Malaysian palm oil futures jumped on Monday, tracking strong gains in soyoil on the Chicago Board of Trade (CBOT) and related edible oils on China's Dalian Commodity Exchange.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange was up 1.8 percent at 2,503 ringgit ($582.57) a tonne at the close of trade, its strongest gain in three months.

It earlier rose to an intraday peak of 2,504 ringgit, its highest level since June 19. Traded volumes stood at 37,908 lots of 25 tonnes each.

"The market is up on strong gains in soyoil," said a Kuala Lumpur-based futures trader, referring to palm's rival oilseed on the CBOT.

Gains in soyoil and refined bleached and deodorized palm olein on China's Dalian exchange were also supportive of palm oil, he added.

Palm oil prices are impacted by movements in soyoil as they compete for a share in the global edible oils market. Soybean oil on the CBOT rose 1.1 percent on Monday, after the U.S. Department of Agriculture reported lower-than-expected estimates for plantings and soybean stocks.

In other related oils, the September soybean oil on the Dalian Commodity Exchange was up as much as 1.3 percent, while the September palm olein contract rose 1.1 percent.

Gains, however, are not likely to be sustained as exports remain weak after the Ramadan and Eid-Al-Fitr, said another trader. - Reuters