04/01/2010 (Business Times, Malaysia) - PALM oil gained to the highest in more than seven months, adding to the best annual performance in 12 years, on anticipation higher crude oil prices would lift demand for biofuels.

Palm oil rallied 56 per cent last year on rising demand from India and China, the biggest consumers, and amid tight supplies of soybean oil because of drought in South America.

Crude surged 78 per cent in 2009, the best annual gain in a decade, and soybean oil rose 21 per cent.

“Looking ahead, crude oil price and the influence of the dollar will remain a major influence on vegetable oil prices,” James Fry, managing director of LMC International, said by email before trading began.
 
March-delivery palm oil gained as much as 1.2 per cent to RM2,696 a metric ton at 11:46 a.m. on the Malaysia Derivatives Exchange, highest since May 15 in intra-day trading. -Bloomberg-