KUALA LUMPUR: Malaysian palm oil futures ended higher on Thursday, driven by bargain buying after falling for two days, while traders assessed simmering Russia-Ukraine tensions.

The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange ended up 74 ringgit, or 1.36%, at 5,507 ringgit ($1,315.89) a tonne.

Uncertainties over the Russia-Ukraine standoff should keep the market cautious and may limit a sharp bounce in palm oil, a Kuala Lumpur-based trader said.

Oil prices dropped as talks to resurrect a nuclear deal with Iran entered their final stages, but losses were limited by heightened tensions between top energy exporter Russia and the West over Ukraine.

Weaker crude prices make palm a less attractive option for biodiesel feedstock.

Palm oil fundamentals have been positive so far this month and cargo surveyors said Feb. 1-15 exports surged between 11% and 24% month-on-month, while a millers’ association pegged a 0.46% uptick in production.

Malaysia has maintained its March export tax for crude palm oil at 8% and raised its reference price.

In related oils, Chicago soyoil prices fell 0.3%, after rallying 2% overnight on concerns that the forecast rain may be insufficient to avert further drought damage to crops in Argentina and southern Brazil.

Dalian’s most-active soyoil contract rose 1.4%, while its palm oil contract gained 1%.