KUALA LUMPUR: Malaysian palm oil futures reversed early losses on Wednesday as traders weighed forecasts for improved production against robust exports outlook.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange ended up 38 ringgit, or 0.98%, at 3,935 ringgit ($955.33) a tonne. It has risen in 10 out of the past 11 days.
“Prices are up supported by fundamentals of low stocks and higher global vegetable oil complex,” said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
The market had declined slightly in early trade, as the Southern Peninsula Palm Oil Millers’ Association forecast a large increase in March 1-15 production in Malaysia while Indonesia’s output is also expected to rise, a Kuala Lumpur-based trader said.
Dalian’s most-active soyaoil contract fell 1.5%, while its palm oil contract declined 1.9%. Soyaoil prices on the Chicago Board of Trade rose 0.4%.
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