KUALA LUMPUR, Dec 24: Malaysian crude palm oil futures rose further on Monday, gaining 1.3 per cent as higher prices of rival soybean oil and lower supplies from plantations hit by floods boosted the market.

An increase in exports announced by cargo surveyors also supported palm oil prices, which are just 38 ringgit off a record high of 3,068 ringgit a tonne hit in November.

The benchmark March contract on the Bursa Malaysia Derivatives Exchange finished up 38 ringgit at 3,030 ringgit ($908) a ton.

Higher soyaoil and crude oil hovering around $93-$94 a barrel are supporting the market, said one trader.

The weather and the demand are helping prices to stay higher but the question is that is there a scope for more gains? I think it will all depend on the weather in the coming days.

The situation in flood-hit central Pahang and eastern Kelantan states has improved with more evacuees returning home, state news agency Bernama reported on Monday.

But the Meteorological Department said parts of peninsular Malaysia and Sarawak state on the Borneo island were forecast to see a high tide until Jan. 29, which raises the possibility of more floods.

Other traded months rose between 36 and 37 ringgit.

Overall volume fell to 4,693 lots of 25 tonnes each, half of around 10,000 lots that change hands on a routine day.

Exports of Malaysian palm oil products during Dec. 1-20 rose 2.3 per cent to 946,210 tons from 925,104 tons shipped between Nov. 1 and 20, cargo surveyor Intertek Testing Services said on Friday.

Another surveyor Societe Generale de Surveillance said exports during the period rose 1.4 per cent to 964,094 tonnes.

Soyabean futures at the Chicago Board of Trade rallied to a 34-year high on Friday, on follow-through technical buying and bullish long-term fundamentals, traders said.

January soyaoil ended 0.52 cent per lb higher at 47.15 cents; deferreds were up 0.36 to 0.65 cent with most making contract highs.

In Malaysia’s physical market, crude palm oil for December and January shipments in the southern region was quoted at 3,030/3,035 ringgit a ton. Trades were done between 3,020 and 3,030 ringgit.—Reuters