KUALA LUMPUR: Malaysian palm oil futures climbed for a second straight day on Tuesday to close at a near 10-week high, as Russia backtracking from a Black Sea grains export deal raised concerns over global edible oil supplies.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 187 ringgit, or 4.61%, to 4,241 ringgit ($895.67) a tonne, its highest closing since Aug. 25.

Grain was flowing out of Ukraine at a record pace on Monday under an initiative led by the United Nations, aimed at easing global food shortages despite Russia warning it was risky to continue after it suspended its participation in the pact.

Sunflower oil shipments from the Black Sea region have been hampered by the Russia-Ukraine conflict and could be further disrupted by Russia’s latest move.

Palm ends higher after Russia pulls out of Black Sea export corridor

Indonesia has extended its policy of waiving a palm oil export levy until the end of this year, unless the palm oil reference price breaks $800 per tonne, the economic ministry said on Monday.

“Malaysian crude palm oil will be attractive for the export markets; however, demand for refined products will pivot lower due to cheaper values from Indonesia,” said Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari.

Dalian’s most active soyoil contract rose 2.4%, while its palm oil contract jumped 4.9%. Soyoil prices on the Chicago Board of Trade were up 0.7%.

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