#palmoil
Malaysian palm oil futures rose on Monday as traders reported tight physical supplies for the month of August and the market tracked firmer rival vegetable oils on the Chicago and Dalian exchanges.
Benchmark palm oil futures for October delivery on the Bursa Malaysia Derivatives Exchange gained 1.4% to RM2,440 (US$605) per tonne at the close of trade.
Palm snapped five sessions of gains on Friday to record its sharpest fall in two weeks.
Traded volumes stood at 39,313 lots of 25 tonnes each on Monday evening, lower than the 2015 average of 44,600.
"People are talking about tightness in the market ... There is some demand from China and India coming in. The Mid-Autumn festival is coming in a month," said a trader based in Kuala Lumpur.
"US soybean and Dalian are also up. On Friday the market came down on profit-taking, so now it is back up."
China, the world's second largest palm oil consumer, will celebrate the Mid-Autumn festival in mid-September this year, leading to higher consumption of the tropical oil.
Cargo surveyor data had showed that palm oil exports from Malaysia rose 12-15% for the full month of July from June, boosted by demand from Europe and China.
A Reuters survey forecast that Malaysia's July exports will rise nearly 14% month-on-month, while inventories see a 3.1% gain to 1.83 million tonnes.
Official government data on stock levels and exports from the Malaysia Palm Oil Board are scheduled for release on Wednesday, after 0430 GMT.
Stronger performing rival oils also lent some support to palm on Monday morning, said traders. The Chicago Board of Trade soybean oil contract for December was up 0.6%, while the Dalian Commodity Exchange's January soybean oil contract gained 0.6%.
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