JAKARTA: Malaysian palm oil futures rose on Tuesday, rebounding from earlier losses, after reports of India’s higher palm oil imports and Indonesia’s preparation for implementing a higher blend of biodiesel, which contains palm oil-based fuel.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 3.00% to 4,086 ringgit ($930.54) per tonne by the end of the afternoon session, after losing as much as 2.50% earlier in the day.
“After the recent price drop, the market was waiting for supportive news to stabilise the pricing,” a Kuala Lumpur-based trader said, adding that reports from India and Indonesia “lent the support that the market was looking for.” Palm oil imports by India, the world’s top vegetable oil importer, jumped 29% in November from a month ago. A steep discount to rivals soyoil and sunoil made buying the tropical oil lucrative for local refiners, five dealers told Reuters on Tuesday.
On Tuesday, Indonesia’s president asked his cabinet minister to create a mechanism next year to ensure the rollout of B35 biodiesel, which contains a 35% mix of palm oil-based fuel. The world’s largest palm oil producer currently has a mandatory B30 and is finalising trials for B40.
Meanwhile, Dalian’s palm oil contract fell 2.15%, while its most active soyoil contract lost 0.39%.
Soyoil prices on the Chicago Board of Trade gained 1.25% after a 4% loss overnight.
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