Palm jumps nearly 3pc, snaps losing streak on stronger related oils

KUALA LUMPUR: Malaysian palm oil futures jumped by nearly 3 percent on Tuesday, recovering from a more than five-month low in the previous trading session, tracking gains in related edible oils.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange rose 2.8 percent to 2,040 ringgit ($491.92) a tonne by the close for its strongest daily gain in two months. It had earlier risen as much as 2.9 percent to 2,042 ringgit.

Palm previously fell for seven days running, losing 5 percent of its value last week.

It seems to have found a support range of 1,940-1,967 ringgit a tonne and could bounce towards 2,034 ringgit, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

"The market is up tracking soyoil and on the easing of trade tensions between the United States and China," one Kuala Lumpur-based futures trader said, though he cautioned that concerns over the trade dispute lingered in the market.

Palm oil futures fell to their lowest in more than five months on Monday as US President Donald Trump's threats to increase tariffs on Chinese imports damaged prospects for a trade deal, sending global commodities and stock markets lower.

Fears of an escalation in the trade conflict eased after Beijing said on Tuesday that China's vice premier would travel to the United States for trade talks.

In related oils, the Chicago July soybean oil contract fell 0.8 percent on Monday but rebounded with a 0.5 percent gain on Tuesday.

Meanwhile, the May soyoil contract on the Dalian Commodity Exchange rose 0.4 percent and the Dalian May palm oil contract slipped by 0.9 percent.

Palm oil prices are affected by movements in soyoil, with which it compete for global market share.