Malaysian palm oil futures rebounded on Tuesday on bargain-hunting a day after a radical Cyprus bailout proposal had prompted declines, although gains were capped as uncertainty remained ahead of a vote on the plan. Palm oil traders were also looking ahead to Malaysia's March 1-20 export data on Wednesday for better indication of export demand after nearly flat growth in shipments for the first half of the month.
"Market players are hoping for higher exports to help ease stocks further," said a trader with a foreign commodities brokerage in Malaysia. The country's palm inventory level fell to 2.44 million tonnes in February from January's 2.58 million tonnes on seasonally slower production. By market close, the benchmark June contract on the Bursa Malaysia Derivatives Exchange had gained 1.3 percent to 2,417 ringgit ($777) per tonne. Prices traded in a range between 2,397 to 2,426 ringgit.
Total traded volume stood at 31,142 lots of 25 tonnes each, higher than the usual 25,000 lots. Technical analysis shows Malaysian palm oil looks neutral in a range of 2,383 to 2,460 ringgit per tonne, and an escape will point a future direction, said Reuters market analyst Wang Tao. In other vegetable oil markets, US soyaoil for May delivery gained 0.1 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange also gained 0.8 percent.
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