The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange was up 62 ringgit, or 2.42%, at 2,704 ringgit ($635.79) as of 0242 GMT, hovering at a five-month high hit on Monday.
Palm had eased 0.75% in the previous session on profit taking after two days of sharp rains.
Traders are expecting July crude palm oil production in Indonesia and Malaysia to fall as heavy rain and floods disrupt harvesting.
Edible oil refiners in Nepal have all but stopped buying crude palm oil amid surging domestic stockpiles after top buyer India suspended most imports of refined oil from the country, industry officials told Reuters.
Dalian’s most-active soyoil contract rose 1.91%, while its palm oil contract gained 2.52%. Soyoil prices on the Chicago Board of Trade were also up 1.04%.
A rally in China’s rapeseed oil futures is pushing its price spread with other edible oils to the widest in years, with lower imports of the oilseed from Canada and tightening supplies spurring trading interest and volumes.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Sime Darby Plantation, the world’s largest producer of sustainable palm oil, rolled out the replanting of unproductive trees with its new higher-yielding seedling which it says is 20% more productive.
Asia shares were set to open lower on Wednesday after U.S. President Donald Trump’s comments regarding the country’s surge in novel coronavirus cases outweighed a slight rally on Wall Street.