KUALA LUMPUR: Malaysian palm oil futures were on track to post a session of gains on Tuesday, supported by better-performing soyoil on the Chicago Board of Trade (CBOT), and on retracement after a sharp decline in the previous session.
Palm had dropped over 4 percent on Monday, posting its sharpest intraday fall in over four months, as it tracked weaker-performing rival oils on China's Dalian Commodity Exchange.
Dalian was down on talk of Chinese government measures to curb speculation in trade.
Benchmark palm oil futures for January on the Bursa Malaysia Derivatives Exchange was up 1.4 percent to 2,891 ringgit ($668) a tonne at the midday break.
Traded volumes stood at 25,435 lots of 25 tonnes each.
"The market has been a bit overdone. Today's gain is a retracement on an oversold condition," said a futures trader from Kuala Lumpur, referring to the sharp decline in palm on Monday.
Palm had climbed to a four-year high on Friday on the back of a weaker ringgit, which makes the tropical oil cheaper for foreign currency holders.
Other traders say stronger soyoil on the CBOT also provided support to the market. Palm prices are impacted by related vegetable oils, as they compete for a share in the global edible oils market.
The December soybean oil contract on the Chicago Board of Trade was up 0.6 percent.
In other related vegetable oils, the January soybean oil contract on China's Dalian Commodity Exchange slipped 0.5 percent, while the January contract for palm olein on China's Dalian Commodity Exchange declined 1.8 percent.
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