JAKARTA: Malaysian palm oil futures rose on Tuesday, tracking strength in Dalian palm oil prices and Chicago soyoil, while supply concerns due to floods in peninsular Malaysia and a higher Indonesian export tax and levy in December adding support.

The Bursa Malaysia Derivatives Exchange’s benchmark contract for February delivery was up 121 ringgit or 2.44%, to 5,076 ringgit a metric ton at closing.

“Palm oil futures rose mostly on Dalian upside,” a Kuala Lumpur-based trader said.

Dalian’s palm oil contract surged 2%, while its most-active soyoil contract dropped 1.4%. Soyoil at the Chicago Board of Trade climbed 1.3%.

Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market.

Supply concerns emerged as peninsular Malaysia was hit by floods that officials fear could be the worst in a decade, which could affect palm oil production, lending support for the contract, the trader added.

Palm snaps five-day rally, dragged down by weak soyoil

A higher export tax and levy by the world’s biggest palm oil exporter, Indonesia, is also supporting prices, the trader said.

Indonesia raised its crude palm oil (CPO) reference price for December to $1,071.67 a metric ton, from $961.97 in November, which put the export tax higher at $178 per ton, from $124 a ton in November.

India’s edible oil imports in November jumped to their highest level in four months as refiners raised purchases of palm oil, soyoil and sunflower oil to replenish inventories after robust demand during festival season, five dealers said.