Malaysian crude palm oil futures rose by as much as 1.4 percent on Friday, rebounding from the previous day's six-week low and tracking gains in other markets, but traders expected the eurozone worries to dampen sentiment. The benchmark March palm oil futures on the Bursa Malaysia Derivatives Exchange closed 0.4 percent higher to 2,985 Malaysian ringgit ($940). Prices had earlier risen as high as 3,015 ringgit.
"Weekend covering," said a Kuala Lumpur-based palm trader said about Friday's gains. "Also, positive regional equity markets and short-term technicals showing signs of recovery." On Thursday, prices touched a six-week low of 2,971 ringgit and are down about 3 percent for the week. Traded volumes for the February palm contract were at 11,658 lots of 25 tonnes each, compared with a three-week high at 16,016 on Thursday. Investors said the monsoon season in top Southeast Asian countries was also offering some support, with expectations of declining output.
Among comparable oils, Chicago soybeans rose around half a percent on Friday, gaining for a second straight day on concerns over dry weather in South America, which is likely to boost demand for US beans. China's most active September 2012 soybean oil contract was also positive.
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