KUALA LUMPUR, Feb 21: Malaysian palm oil futures jumped more than 2 per cent to a new peak for the sixth straight session on Thursday on tight global vegetable oil supplies and crude oil’s record over $101.

Palm oil has climbed nearly 21 per cent this year, driven by increased Chinese and European demand, a flood of funds into commodity markets and Jakarta’s plans to hike export taxes for palm oil.

The benchmark May contract on the Bursa Malaysia Derivatives Exchange rose as much as 84 ringgit to a record 3,708 ringgit ($1,152) a ton. The contract finished up 78 ringgit at 3,702 ringgit.

Palm oil is taking the slack for a variety of factors, said a trader with a foreign brokerage.

Spot palm oil is sold at $1,170 per ton in Rotterdam, at a 21 per cent or $245 discount to soyoil, traders said.

Exports of Malaysian palm oil products for February 1-20 jumped by roughly a third to more than 750,000 tons, cargo surveyors Intertek Testing Services and Societe General de Surveillance said.

Although Chinese demand for palm oil was firm, much of the surge in shipments was underpinned by exports to Europe, which nearly tripled according to Societe Generale de Surveillance.

The renewed appetite for palm oil will start putting pressure on supplies in Malaysia, especially when Indonesia starts increasing export taxes once international prices go beyond $1,200 per ton, traders said.

Such price levels are very possible and with the higher export taxes, less palm oil in Indonesia will be available for overseas buyers because of the need to allocate more for its domestic market,” said a trader with dealings in Indonesia.

In Malaysia’s physical market, crude palm oil for February shipment in the southern region was quoted at 3,700/3,720 ringgit a ton. Trades were done between 3,690 and 3,700 ringgit.—Reuters