SINGAPORE: Malaysian palm oil futures rebound on Friday from the previous day's three-year low but prices were still on course for the fourth straight weekly loss as worries persisted over record high stocks.
For the week, palm oil has lost more than 2 percent after slumping to the lowest since November 2009 on Thursday. Sluggish global economic growth hurting commodity demand has also put the edible oil on track for the steepest annual loss since 2008.
"Concerns about large stockpiles are still hovering despite the fact that, on the financial market side, we have further stimulus coming from the US Fed and some speculation that Japan may expand its asset purchasing programme," said Ker Chung Yang, commodities analyst with Phillip Futures in Singapore.
"For today we see some kind of a relief rally after yesterday's drop, but the fundamentals are still the same."
By the midday break, the benchmark February contract on the Bursa Malaysia Derivatives Exchange edged up 0.8 percent to 2,248 ringgit ($736) per tonne. Prices fell to 2,217 ringgit the previous day, a level unseen since November 2009.
Total traded volumes stood at 15,860 lots of 25 tonnes each, higher than the usual 12,500 lots.
Traders will be looking out for Malaysia's export data for the first half of December, hoping for a stronger export demand after cargo surveyor Intertek Testing Services reported a 2.8 percent slide in shipments for the Dec. 1-10 period.
They are also waiting for Malaysia's new January crude palm oil export tax set to be announced on Monday, with analysts expecting it to be set at zero, a level that could boost export demand and help bring stocks down.
In a bullish sign for palm oil, Brent crude rose above $108 a barrel on Friday on a brighter economic outlook for China, the world's second largest oil consumer, but worries about the economic impact of a possible US fiscal crisis capped price gains.
In other vegetable oil markets, US soyoil for January delivery gained 0.8 percent in early Asian trade. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange edged up 1 percent.
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