Malaysian palm oil futures rebounded on Wednesday evening, lifted from an earlier two-week low by expectations of stronger cargo surveyor data due for release on Thursday. The market had fallen on an expected increase in production, with Malaysia's palm oil output on track to rebound this year from an El Nino-affected 2016, though a Reuters poll of traders, planters and analysts suggested it will miss previous forecasts on a par with 2015's record high.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange rose 0.5 percent to 2,525 ringgit ($589.33) at the midday break. It earlier dipped to 2,494 ringgit, its lowest since July 4. Traded volumes stood at 33,582 lots of 25 tonnes each.
"Export figures are expected to look quite good," said one futures trader in Kuala Lumpur, referring to export data for the July 1-20 period scheduled for release on Thursday. "Overall shipments for the full month of July, however, are expected to be unchanged to slightly negative versus June."
In related oils, the December soyabean oil contract on the Chicago Board of Trade rose 0.2 percent while September soyabean oil on the Dalian Commodity Exchange was down 0.1 percent. The September palm olein contract declined by 0.5 percent. Palm oil prices are affected by the performances of other edible oils, which compete for a share in the global vegetable oils market.
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