KUALA LUMPUR: Malaysian palm oil futures closed higher on Monday, rebounding from last week’s losses after Russia withdrew from a Black Sea export deal, jeopardising global grain and sunflower oil supplies.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 58 ringgit, or 1.45%, to 4,047 ringgit ($856.33) a tonne.

It had earlier risen 5% on global supply concerns after Russia on Saturday suspended participation in a U.N.-brokered Black Sea grain deal.

The move is likely to hit shipments to import-dependent countries, deepening a global food crisis and sparking gains in prices.

Clouds of uncertainty hover over exports of sunflower oil from Ukrainian ports, creating a potential bullish scenario for competing vegetable oils, especially soy and palm, said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.

Palm oil tracks rivals lower, posts 2.8% weekly drop

Exports of palm oil from Malaysia in October rose between 5% and 11.7% from September, cargo surveyors data showed.

Soyoil prices on the Chicago Board of Trade were up 1.8%. Dalian’s most-active soyoil contract fell 2%, while its palm oil contract eased 0.6%.

Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.