03.06.2020 (Economic Times) - KUALA LUMPUR: Malaysian palm oil futures inched up for a second session on Wednesday, hovering at a near two-month high, as crude and rival soyoil prices rose but traders remained cautious ahead of May production data release.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 9 ringgits, or 0.38 per cent, to 2,350 ringgits ($552.03) a tonne by the midday break.

The contract hit its highest level since April 9 in the previous session.

Uncertainties about May production in Malaysia kept traders cautious with many preferring to remain on the sidelines, said Paramalingam Supramaniam, director of Selangor-based brokerage Pelindung Bestari Sdn Bhd.

"Exports are better in June, with offtake mainly coming from India, but July demand is just lukewarm," Paramalingam added.

Traders are expecting the Malaysian Palm Oil Association to release its estimates of May production this week.

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