KUALA LUMPUR: Malaysian palm oil futures rose for a fourth consecutive session on Thursday to their highest close in more than a year, underpinned by stronger rival edible oils and robust demand from key buyers.

The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange closed up 96 ringgit, or 2.29%, to 4,291 ringgit ($916.10), its highest closing level since March 3, 2023.

Robust performance of competing oils and persistent apprehensions over diminishing reserves in Malaysia, the world’s second-biggest palm oil producer, have heightened demand from key importers such as India, China and the Middle East, Mitesh Saiya, trading manager at Mumbai-based trading firm Kantilal Laxmichand & Co, said.

Dalian’s most-active soyoil contract rose 1.28%, while its palm oil contract added 3.54%. Soyoil prices on the Chicago Board of Trade were up 0.68%.

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

Malaysia’s palm oil stocks at the end of February dwindled to their lowest in seven months as production hit a 10-month low, offsetting the slowdown in exports.

Palm oil closes at highest level in over a year

Inventories at the end of last month fell 5% to 1.92 million metric tons from January, crude palm oil production declined 10.18% to 1.26 million tons, while exports plunged 24.75%, data from industry regulator the Malaysian Palm Oil Board showed on Monday.

India’s palm oil imports plunged to their lowest level in nine months in February as higher prices prompted buyers to reduce purchases in favour of rival sunflower oil, a leading trade body said on Wednesday.

Oil prices climbed in early trade on Thursday, supported by strong demand in the U.S. after gasoline stocks hit a three-month low and crude stockpiles dropped unexpectedly, with supply concerns remaining after Ukrainian attacks on Russian refineries.

Stronger crude oil makes palm a more attractive option for biodiesel feedstock.