Palm oil rises over 2pc as Chicago soybean prices rally
- The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was up at 4,015 ringgit ($971.68) a tonne when the market closed.
- The contract gained 0.6% this week after plunging 11.43% in the previous week, its biggest weekly drop in one year.
JAKARTA/SINGAPORE: Malaysian palm oil futures rose 2.53% on Friday, rebounding from losses in the previous session, tracking gains in soybean prices on the Chicago Board of Trade (CBOT).
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was up at 4,015 ringgit ($971.68) a tonne when the market closed.
"Support came from a bullish recovery in CBOT soybean futures and ICE Canola and Euronext rapeseed futures," Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group, told Reuters.
The contract gained 0.6% this week after plunging 11.43% in the previous week, its biggest weekly drop in one year.
CBOT soybean futures rallied on Thursday for the first time in eight sessions on short-covering, technical buying, and spillover support from surging corn prices.
Its soybean oil contract was last up 0.3%.
Meanwhile, Dalian soyoil and palm oil contracts rose 1.03% and 0.82%, respectively.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil is expected to retest a resistance at 4,010 ringgit per tonne, a break above which could lead to a gain to 4,132 ringgit, Reuters analyst Wang Tao said.
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