KUALA LUMPUR: Malaysian palm oil futures extended gains and ended over 1% higher on Tuesday, tracking strength in crude and rival oil prices, while higher exports in the first half of this month also aided sentiment. The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed up 49 ringgit, or 1.69%, to 2,941 ringgit ($712.11), its highest since late January. It had gained nearly 3% on Monday.

"Prices remained firm premised on overall strength in vegetable oils worldwide," said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari Sdn Bhd.

Traders expect end-stocks in September to remain unchanged from a month earlier as a surge in exports is expected to negate a seasonal rise in production, he added.

Malaysia's palm oil exports during Sept. 1-15 rose 12% from the month before, in line with market expectations, according to data released by cargo surveyors. Crude palm oil prices are likely to decline in the next few months, as yields and output increase due to gradual realisation from better weather conditions and seasonality, Fitch Ratings said.

Palm oil imports into the European Union and Britain in the 2020/21 season totalled 1.29 million tonnes by Sept. 13, up 4.9% from the previous season, official EU data showed. Oil prices edged slightly higher, making palm oil a more attractive option for biodiesel feedstock, but forecasts of a slower than expected recovery in global fuel demand due to the coronavirus pandemic weighed.

Dalian's most-active soyaoil contract rose 1.2%, while its palm oil contract gained 1.82%. Soyaoil prices on the Chicago Board of Trade were up 0.38%. Palm oil is affected by price movements in related oils as it competes for a share of the global vegetable oils market.