Palm oil rebounds on stronger rival oils; falling exports cap gains
- The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose 31 ringgit, or 1%, to 3,273 ringgit ($809.75) a tonne during early trade. It had posted its second straight weekly loss last week.
SINGAPORE: Malaysian palm oil futures rebounded to gain 1% on Tuesday after two consecutive sessions of losses, tracking strength in rival oils in China and the United States, although a drop in exports capped further gains.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose 31 ringgit, or 1%, to 3,273 ringgit ($809.75) a tonne during early trade. It had posted its second straight weekly loss last week.
"Prices are tracking higher external markets," a Kuala Lumpur-based trader told Reuters.
Dalian Commodity Exchange's most-active soyoil contract reversed earlier losses to jump 1.3%, while its palm oil contract rose 1.1%.
Chicago soybean futures rose slightly, extending gains from the previous session fuelled by bargain after last week's steep declines. Its soyoil prices however were last down 0.2%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil looks neutral in a range of 3,221-3,300 ringgit per tonne, and an escape could suggest a direction.
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