KUALA LUMPUR: Malaysian palm oil futures were headed for their first session of gain in three on Wednesday, tracking stronger rival oils on the Chicago Board of Trade (CBOT) and China's Dalian Commodity Exchange.
Benchmark palm oil futures for February on the Bursa Malaysia Derivatives Exchange were up 1.4 percent at 2,852 ringgit ($656) a tonne at the midday break.
Traded volumes stood at 19,514 lots of 25 tonnes each.
"Soybean oil (on the CBOT) is seeing some upside, and Dalian also moved higher," said a futures trader based in Kuala Lumpur.
The market is undergoing a correction after a few volatile sessions, traders said.
Palm climbed to a four-year high of 3,089 ringgit on Friday due to a weaker ringgit, which makes the tropical oil
cheaper for foreign currency holders.
It then posted its sharpest decline in over four months on Monday, tracking weaker rival oils on the Dalian Commodity Exchange after news of Chinese government measures to curb speculation.
Palm prices are affected by the performance of related vegetable oils, as they compete for a share in the global edible oils market.
The December soybean oil contract on the CBOT was up 0.5 percent, while the January soybean oil contract on the Dalian Commodity Exchange rose 1.1 percent.
In other vegetable oils, the January contract for palm olein on the Dalian Commodity Exchange was up 1.7 percent.
Palm oil has found a support at 2,814 ringgit per tonne and it may bounce towards a resistance at 2,879 ringgit, showed analysis by Reuters market analyst for commodities and energy technicals Wang Tao.
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