Malaysian palm oil futures rose more than 0.7 percent on Monday, after traders said the market was oversold last week. The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange climbed to 1,986 ringgit ($474.33) per tonne. Trading volumes stood at 47,946 lots of 25 tonnes each at the close of trade.
Traders said the market was stabilising after sell-offs last week, although inventory and production concerns remain.
"Market is stabilising and inching higher after being oversold," a Kuala Lumpur-based trader said.
The futures contract slid in eight out of the last 10 sessions, hitting its lowest level since August 2015 last week. On Friday, palm opened 4.1 percent higher from Thursday only to fall 4.3 percent in the same session.
Stockpiles at the end of October increased 7.6 percent from the previous month to 2.72 million tonnes, while production rose 6 percent to 1.96 million tonnes, official data from the Malaysian Palm Oil Board showed last week.
In other related edible oils, the Chicago December soyabean oil contract was down 0.1 percent. On the Dalian Commodity Exchange, the January soyabean oil contract dipped 0.3 percent, while the January palm oil contract fell 1.4 percent.
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