Malaysian palm oil futures ended higher on Wednesday, rebounding from the previous session's slide to an over-9-month low, as a recovery in comparative soy markets and a weaker ringgit provided some relief to the tropical oil. The US soyoil contract rose 0.3 percent in late Asian trade, while the most active soybean oil contract on the Dalian Commodities Exchange gained 0.2 percent. Palm oil typically tracks soy markets, a common food and fuel substitute.
"The recovery in soybean oil markets, which are oversold, is helping palm to rebound," said a trader with a local commodities brokerage in Malaysia. The benchmark October contract on the Bursa Malaysia Derivatives Exchange edged up 0.9 percent to 2,304 ringgit ($723) per tonne at Wednesday's close. Prices in the previous session had dropped to a more-than-9-month low of 2,292 ringgit, dragged by prospects of bigger competing edible oil supply as well as losses in crude oil markets.
Total traded volume on Wednesday stood at 49,375 lots of 25 tonnes, much higher than the usual 35,000 lots. Technicals showed that Malaysian palm may retest support at 2,298 ringgit per tonne, as it could have completed a rebound triggered by this level, said Reuters market analyst Wang Tao. However, Tao added that a break above 2,328 ringgit will indicate the continuation of the rebound towards 2,346 ringgit.
Malaysia's shipments of palm oil products were 14.2 percent higher between July 1-15 compared to the same period a month ago, data from cargo surveyor Intertek Testing Services showed, thanks to bigger purchases from China and Europe. Another cargo surveyor Societe Generale de Surveillance showed that exports for the same period rose 11.4 percent to 653,675 tonnes from 586,701 tonnes shipped a month ago.
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