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The commodity for delivery in February added 1.6 per cent to 3,540 ringgit (£723) a metric ton, before retreating slightly to end at 3,500 ringgit on the Malaysia Derivatives Exchange, Bloomberg reports.
Bayu Krisnamurthi, deputy farm minister in Indonesia, the world's largest producer, predicted global uptake of the crop is expanding by up to 11 per cent a year, with traders potentially eager to earn extra money before prices rise further.
Krishna Reddy, analyst at Way2Wealth Commodities, stated: "Exports from Malaysia point to strong demand for palm oil among major importers," observing: "Increased demand is coming in at a time when concerns about supplies are mounting."
Wheat traders today saw prices reach a three-week peak due to weather concerns relating to crops in Australia and the US southern Great Plains.
Posted by Greg Secker
