Malaysian palm oil futures closed higher on Wednesday, rebounding from their weakest levels in over three weeks, as they tracked related oil prices in the Chinese market. The palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange rose 0.9 percent to 2,440 ringgit ($611.99) per tonne by the end of the session.
Earlier in the day, it hit 2,395 ringgit, its lowest since May 8. The benchmark fell nearly 3 percent in the previous two sessions to Monday. The Malaysian market was closed on Tuesday for a public holiday. Trade volume stood at 32,864 lots of 25 tonnes each on Wednesday.
"Market was tracking Dalian closely in the afternoon, even when we are hearing that exports may be underperforming," said a palm trader in Kuala Lumpur. September soyabean oil on China's Dalian Commodity Exchange jumped as much as 3 percent, while the Dalian September palm oil contract closed 0.6 percent higher.
Palm oil is affected by movements in rival edible oils as they compete for a share in the global vegetable oils market. Meanwhile, shipping surveyors are due to release May export data on Thursday.
Palm prices may be "adjusted accordingly" in Thursday's session if the data came in below expectations, the trader said.
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