KUALA LUMPUR: Malaysian palm oil futures rallied for a second consecutive session to hit a two-week closing high on Tuesday, as industry surveys pointed to tightening November production and inventory. The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange climbed 181 ringgit, or 3.81%, to 4,931 ringgit ($1,165.72) a tonne, its highest close since Nov. 22.

It had gained 0.6% during its first night trading session on Monday. Malaysia’s palm oil inventories at end-November likely slipped 3.5% from the previous month to a four-month low of 1.77 million tonnes, a Reuters survey showed on Monday.

The market was also supported by Malaysian Palm oil Association (MPOA) data showing November production of around 1.65 million tonnes, lower than trade estimates of around 1.71 to 1.72 million tonnes, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group. Investors are also awaiting Malaysian Palm Oil Board data and early December export data from cargo surveyors, both due on Friday.

Bagani said Sunvin expects December palm oil exports from Malaysia to slide more as China was completely out of palm oil buying and India had robust purchases during October and November. Top producer Indonesia will bring in a new levy for palm plantations within the next two years, the proceeds of which will be used to protect public interests and the environment, its finance minister said.

Dalian’s most-active soyoil contract rose 0.8%, while its palm oil contract rose 0.7%. Soyoil prices on the Chicago Board of Trade were up 1%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.

Oil prices extended gains from a near 5% rebound the day before as concerns about the impact of the Omicron coronavirus variant on global fuel demand eased, making palm a more attractive option for biodiesel feedstock.