SINGAPORE: Malaysian palm oil futures staged a rebound and rose at closing on Wednesday, though a decline in exports and strengthening ringgit capped gains.

The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose 15 ringgit, or 0.4%, to 3,682 ringgit ($770.78) per metric ton at closing.

Exports of Malaysian palm oil products for Oct. 1-25 were estimated to have fallen between 1.1% and 3.1% from a month earlier, data from independent inspection company AmSpec Agri Malaysia and Intertek Testing Services said on Wednesday.

Despite China’s fiscal stimulus announcement, the outlook for edible oil demand remains challenging due to weak crushing margins and an ample supply of vegetable oil, said Mitesh Saiya, trading manager for Kantilal Laxmichand & Company in Mumbai.

Palm oil closes lower on stronger soybean harvest, recovering ringgit

The existing surplus of vegetable oil is impeding a full recovery, and the fiscal stimulus measures have not proven sufficient to significantly bolster the market, Saiya added.

Dalian’s most-active soyoil contract fell 1%, while its palm oil contract was down 1.2%.

Soyoil prices on the Chicago Board of Trade rose 0.8%.

The Malaysian ringgit, palm’s currency of trade, strengthened 0.1% against the dollar. A stronger ringgit makes palm oil less attractive for foreign currency holders.

Oil benchmark Brent held above $88 on Wednesday as concerns about war escalating in the Middle East offset demand worries stemming from gloomy economic prospects in Europe. Benchmark prices have fallen in each of the previous three sessions.