KUALA LUMPUR: Malaysian palm oil futures reversed early losses on Tuesday, tracking rival soyaoil prices that have been climbing on concerns over damage to the US Midwest grain belt after last week's storm.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed up 31 ringgit, or 1.16%, to 2,710 ringgit ($648.33), after falling to an intraday low of 1%.
Palm is getting support from bullish momentum in rival soyaoil prices at the United States and South America, said Anilkumar Bagani, research head of Sunvin Group, a Mumbai-based vegetable oil broker. A storm packing hurricane-force winds tore across the US Midwest last week, toppling grain bins in dozens of counties and compounded troubles for a US farm economy already battered by extreme weather and the trade war with China.
Dalian's most-active soyaoil contract rose 0.62%, while its palm oil contract fell 0.25% and soyaoil prices on the Chicago Board of Trade were up 0.52%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Malaysia's palm oil exports for Aug. 1 to 15 fell 16% from the month before, cargo surveyors said on Saturday.
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