#palmoil
Malaysian palm oil futures rose to their highest levels in more than a week on Monday, supported by improving demand and a technical correction after trading at around 8-month lows.
Benchmark palm oil futures for October delivery on the Bursa Malaysia Derivatives Exchange rose 0.6% to close at RM2,329 per tonne. Palm earlier hit an intraday high of RM2,353, its strongest since July 21.
Traded volumes stood at 34,254 lots of 25 tonnes each at Tuesday's closing trade, lower than the 2015 average of 44,600.
"China is buying a bit, and also in India some tightness is being felt," said a trader from Kuala Lumpur, referring to the two largest palm consuming countries globally.
"The market was down for so long, it is time for a correction."
Palm plunged to a 10-month low last month on weak export data and a stronger ringgit, trading in the RM2,200-2,300 range. The market fell 1.6% in July, tracking poorer performing rival oils.
A stronger ringgit, palm's traded currency, usually makes the tropical oil more expensive for holders of foreign currencies.
Palm oil product exports from Malaysia, the world's second largest producer after Indonesia, gained 12-15% in the full month of July versus a month earlier, data from cargo surveyors Intertek Testing Services and Societe Generale de Surveillance showed on Monday.
Traders had earlier forecast better export data, as buyers look to replenish stocks amid softer palm oil demand after the Muslim festive seasons of Ramadan and Eid-al-Fitr.
Palm oil is expected to test a resistance at RM2,374 per tonne, showed analysis by Reuters market analyst for commodities and energy technicals Wang Tao.
In competing vegetable oils, the Chicago soybean oil contract for December fell 0.5%, while Dalian's January soybean oil contract rose 1.5%.
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