JAKARTA: Malaysian palm oil futures on Tuesday reversed losses from the previous session, after plunging to their lowest since Jan. 4, supported by stronger vegetable oil prices on the Dalian Commodity Exchange.

The benchmark palm oil contract for September delivery on the Bursa Malaysia Derivatives Exchange gained 87 ringgit, or 1.75%, to 5,068 ringgit ($1,152.34) per tonne in early trade.

“Dalian strengthened in the morning and soy bean oil didn’t follow palm big drop yesterday. Based on spreads, CPO should open higher,” a Kuala Lumpur-based trader told Reuters.

Palm oil targets 4,896 ringgit

The contract lost nearly 9% on Monday, the biggest daily loss since Jan. 28, 2020, after posting the worst weekly session in six weeks last week.