KUALA LUMPUR: Malaysian palm oil futures edged up at the midday break on Wednesday supported by gains in soyoil on the U.S. Chicago Board of Trade (CBOT) after President
Trump said China was back in the market buying U.S. beans.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange was up 0.6 percent at 2,027 ringgit ($486.79) a tonne at the midday break.
Trading volumes stood at 13,224 lots of 25 tonnes each at the midday break. <1FCPO-TOT>
"Palm prices are up following CBOT," said a Kuala Lumpur-based trader, referring to U.S. soyoil prices. "Trump's statement on soybean purchases by China lent support."
Trump said on Tuesday that China was buying a "tremendous amount" of U.S. soybeans and that trade talks with Beijing were already under way by telephone, with more meetings likely among U.S. and Chinese officials.
Palm oil is impacted by movements of other edible oils, as they compete for a share in the global vegetable oil market.
The Chicago January soybean oil contract had gained 0.7 percent on Tuesday, and was last up 0.3 percent on Wednesday.
In other related oils, the January soybean oil contract on the Dalian Commodity Exchange fell 0.7 percent, and the Dalian January palm oil contract declined 0.8 percent.
Palm oil may retest a resistance at 2,056 ringgit per tonne, as its bounce from the Nov. 27 low of 1,940 ringgit looks incomplete, said Wang Tao, a Reuters market analyst for commodities and energy technicals.
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