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Futures for October delivery soared 5.1% to close at RM4,076 a tonne in Kuala Lumpur.

KUALA LUMPUR: Palm oil jumped to the strongest in over a week following a surge in soybean oil after the US senate passed a bill that supports biofuel production and on signs of a recovery in demand in China, the No 2 importer.

Futures for October delivery soared 5.1% to close at RM4,076 a tonne in Kuala Lumpur.

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Soybean oil, palm’s closest substitute for food and fuel, advanced more than 1% after jumping 4.2% on Friday.

A rally in soybean oil bolstered other vegetable oil markets including palm oil, despite estimates for higher palm oil stockpiles in top grower Indonesia and in Malaysia, said Anilkumar Bagani, head of research at Sunvin Group. — Bloomberg

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