KUALA LUMPUR: Malaysian palm oil futures rose on Wednesday, after hitting an eight-week low in the previous session, as broader markets recovered from a sell-off sparked by concerns over the Omicron coronavirus variant, although lingering fears capped gains.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 23 ringgit, or 0.49%, to 4,695 ringgit ($1,117.59) a tonne in early trade.
Fundamentals
Exports of Malaysian palm oil products for November rose 13.8% to 1,681,059 tonnes from October, cargo surveyor Societe Generale de Surveillance said on Wednesday.
Oil prices clawed back some losses after steep falls in the previous session, as major producers prepared to discuss how to respond to the threat of a hit to fuel demand from the Omicron variant.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
- Palm oil giant FGV Holdings said migrant workers should start arriving by end-March 2022 in Malaysia to ease a labour shortage and reverse a slump in output, provided Omicron doesn't disrupt plans.
Dalian's most-active soyoil contract fell 1.5%, while its palm oil contract eased 1%. Soyoil prices on the Chicago Board of Trade were up 1.3%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may test a support at 4,555 ringgit per tonne, a break below which could cause a fall into 4,434-4,480 ringgit range, Reuters technical analyst Wang Tao said.
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