19/02/2008 (The News - International, Pakistan), Kuala Lumpur - Malaysian crude palm oil futures jumped 3.4 per cent on Monday to hit another high as ruined oilseed crops in China fuelled massive buying in the global vegetable oil markets, traders said.

US soyoil surged to an all-time record last week while exports of Malaysian palm products surged as much as 53 per cent as China scrambled to ensure food supplies. Used in products from margarine and lipstick to bio-fuels, palm oil prices have surged to their third record high in two weeks and gained 18 per cent so far this year.

The benchmark May contract on the Bursa Malaysia Derivatives Exchange soared 120 ringgit to reach a record peak of 3,600 ringgit ($1,118) per tonne before settling at 3,599ringgit. Nearly 40 per cent of China’s planted rapeseed crop was damaged by harsh winter weather, the country’s agriculture ministry said last week Overall trade stood shot up to 14,672 lots of 25 tonnes each from the usual 10,000 lots.

Part of the reason for surging Chinese demand was palm oil’s 21 per cent discount to soyoil, which roughly trades at $1,395 per tonne at Rotterdam port, traders said. The Chicago Board was closed on Monday for a holiday. Traders expect the palm oil market to retain a positive tone despite the lack of cues from the soyoil market as surging exports remain positive.

Soyoil and palm oil often compete for exports and their prices usually move in tandem. Exports of Malaysian palm oil products for Feb. 1-15 surged 53 per cent to 603,389 tonnes from 394,395 tonnes shipped between Jan. 1 and 15, cargo surveyor Intertek Testing Services said on Friday.

Refined palm oil futures in China’s Dalian Commodity Exchange gained with the most-active May contract up 1.2 per cent to 10,810 yuan per tonne at 1053 GMT. In Malaysia’s physical market, crude palm oil for February shipment in the southern region were quoted at 3,585/3,600 ringgit a tonne. Trades were done between 3,530 and 3,585ringgit.