KUALA LUMPUR: Malaysian palm oil futures hit an all-time high of 5,228 ringgit a tonne on Thursday, as traders shrugged off weak exports to focus on tight supply and news of Indonesia’s plan to restrict exports of the edible oil.

The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange closed up 66 ringgit, or 1.29%, to 5,190 ringgit ($1,239.55), rising for a second consecutive session.

“The market is holding well on external firmness and expectations that Indonesia will limit crude palm oil exports,” a Kuala Lumpur broker said.

The country’s biggest palm oil association, GAPKI, said on Wednesday the government was currently drafting a plan aimed at limiting shipments of the edible oil to tame domestic cooking oil prices, remarks the Trade Ministry swiftly denied.

To control prices, the ministry said on Tuesday it would require exporters to obtain shipment approval for exports of crude palm oil, used cooking oil and refined, bleached and deodorized palm olein.

Indonesia’s plan is likely to make leading importer India shift to substitute soy and sunflower oils, potentially capping the market’s rally, industry officials and analysts said.

In Malaysia, exports during Jan. 1-20 fell between 36% and 38% from the same week in December, cargo surveyors said.

Dalian’s most-active soyoil contract gained 1.8%, while its palm oil contract rose 1.3%. Soyoil prices on the Chicago Board of Trade were up 0.2% after jumping 2.8% overnight. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.