Malaysian palm oil futures rose on Wednesday to a two-week high, buoyed by using expectations of slowing manufacturing boom and stepped forward exports, charting a fourth directly session of profits.

The benchmark 1/3-month palm oil settlement at the Bursa Malaysia Derivatives Exchange climbed 1.6% to 2,164 ringgit (US$532.35) a tonne, reversing closing week’s losses.

“The futures seem to be using on expectations of slower boom in production,” a Kuala Lumpur-based totally dealer said, mentioning updates from plantations that a warmness wave turned into affecting output.

A bumper harvest remaining yr in Malaysia and Indonesia, the sector’s essential producers, had flushed the marketplace with palm oil and dampened charges.

Stockpile worries were further fanned, after the European Union introduced plans to segment out use of palm oil in renewable transport fuel by way of 2030.

Exports of Malaysian palm oil merchandise for March 1-20 rose zero.Eight% to 925,431 tonnes, from 918,047 tonnes shipped all through Feb 1-20, cargo surveyor Societe Generale de Surveillance stated on Wednesday.

Independent inspection organization AmSpec Agri Malaysia however suggested a 2.Three% fall in exports for the identical length.

Another trader stated there was a few brief overlaying, as the marketplace had fallen closing week and there was superb sentiment constructing as Malaysia and Indonesia considered retaliatory motion against the EU.