JAKARTA: Malaysian palm oil rose on Tuesday, snapping three days of losses, as traders sought bargain amid firmer rival oil prices and higher exports.
The benchmark palm oil contract for April delivery rose 0.82% to 3,955 ringgit ($909.82) per tonne by the end of the afternoon trade, regaining some of the 2% loss it posted over the past three sessions.
Palm recovered “on a combination of bargain buying and higher related soybean oil trade on Dalian,” said Sathia Varqa, co-founder of Singapore-based Palm Oil Analytics.
“Buying interest was a little more stable today drawing on rising exports and an expected slowdown in the pace of February production,” he said, adding that traders are also waiting for Malaysia’s Feb. 1-15 export data.
Exports in Feb. 1-10 rose between 23.3% and 39.3% from Jan. 1-10, cargo surveyors said.
Dalian’s palm oil contract rose 0.38%, while its most-active soyoil contract posted a thin gain. Soyoil prices on the Chicago Board of Trade rose 0.76%.
Palm is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
Palm oil may retest a support of 3,859 ringgit per tonne, a break below which could result in a drop to 3,708 ringgit, said Reuters technical analyst Wang Ta.
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