#palmoil
Malaysian palm oil futures rose to their highest in two months on tight physical supplies of the tropical oil and as competing vegetable oils on China's Dalian Commodity Exchange also gained.
Benchmark palm oil futures for October delivery on the Bursa Malaysia Derivatives Exchange were up 1.1% at RM2,466 (US$612) per tonne on Tuesday evening.
Palm earlier hit an intraday high of RM2,490, its highest since June 15, and charted a seventh winning session out of the past eight.
Traded volumes stood at 40,029 lots of 25 tonnes each at the end of the trading day, below the 2015 average of 44,600.
"There's some nearby tightness in the market," said a futures trader in Kuala Lumpur, attributing it to better demand.
"There's slower growth in production also."
A Reuters poll forecast Malaysia's palm oil output for July to grow 3.8% month-on-month to 1.59 million tonnes, it's strongest production levels since November but the weakest level for July since 2010.
Palm oil seasonally sees output rise during the second and third quarters of the year. However, dry weather caused by the El Nino weather phenomenon earlier this year has limited palm fruit yields and lowered output across Indonesia and Malaysia. The weather event brings scorching heat across Southeast Asia, damaging crops and lowering yield.
The poll had also forecast Malaysia's shipments to rise 13.9% from June to 1.29 million tonnes, in line with export data from cargo surveyors.
Societe Generale de Surveillance reported a 15.4% rise for the full month of July, while Intertek Testing Services showed a 12.7% gain in exports.
Official government data from the Malaysia Palm Oil Board is scheduled for release on Wednesday, after 0430 GMT.
Palm was also supported by stronger rival oils on the Dalian Commodity Exchange. It's January soybean oil contract was up 1.5%, while the January contract for refined, bleached and deodorized palm olein surged 2.5%.
In other related vegetable oils, the Chicago Board of Trade soybean oil contract for December was up 0.2%.
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