Palm oil rises to 8-year high on exports

Palm oil futures rose to the highest in more than eight years on concern that supply may lag behind demand following estimates of higher-than-expected exports from Malaysia, the world's largest producer of the commodity.

Malaysia palm oil exported in the first half of April rose 29 per cent, according to estimates by independent cargo surveyor Societe Generale de Surveillance.

A total of 642,492 tonne of bulk palm oil shipments through Malaysian sea ports were tracked, compared with 496,977 tonne of palm oil in the same period last month, SGS said.

Palm oil for June delivery, the most active contract, rose as much as 88 ringgit, or 4 per cent, to 2,307 ringgit ($671) a tonne on the Malaysia Derivatives Exchange. That's the highest since December 1, 1998, when it touched 2,311 ringgit.

Lower import taxes by India, the world's second-largest vegetable oil buyer, may also bolster the palm oil prices in Malaysia and soybean oil in Chicago.

Last week, India reduced the import duty on edible oils for the third time this year to boost supplies and slow inflation.