20/10/2008 (The Edge Daily), Kuala Lumpur - Malaysian crude palm oil futures soared 5.1% on Monday as strength in the crude oil market lent support to soyoil markets in the US and China, traders said.

The early rally saw prices of the tropical oil recover nearly half of the 11% losses notched up last week after fears of a global recession sparked a sell-off in commodities.

The benchmark January 2009 contract on the Bursa Malaysia Derivatives Exchange rose RM83 to RM1,718 per tonne in the first half hour of trade.

"There is no fundamental basis, it's more of a technical bounce with some broad-based gains in commodities," said a trader with a leading foreign commodities brokerage. "Exports in Malaysia are still looking bearish, though."

Exports of Malaysian palm oil products for Oct 1-20 fell 10.2% to 722,227 tonnes from 803,882 tonnes shipped between Sept 1 and 20, cargo surveyor Intertek Testing Services said on Monday.

Oil extended gains by more than US$1 and hovered above US$73 a barrel on Monday, bolstered by expectations the Organisation of the Petroleum Exporting Countries (Opec) could cut output at an emergency meeting this week to shore up prices.