JAKARTA: Malaysian palm oil futures snapped a two-day losing streak to rise over 1% on Wednesday as costlier rival oils gained, although expectations of higher production and a potential demand slowdown from top buyers India and China capped the rise.
The benchmark palm oil contract for October delivery on the Bursa Malaysia Derivatives Exchange gained 1.6% to 2,644 ringgit ($617.99), after shedding more than 6% in the last two sessions.
"Palm prices are doing some price adjustment. Last two days (prices) dropped too sharply," a Kuala Lumpur-based trader told Reuters.
Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group, said gains were capped amid expectations of a recovery in Malaysian production in the second half of July and a slowdown in demand from key buyers India and China for the time being.
Costlier soyaoil on the Dalian Commodity Exchange and the Chicago Board of Trade (CBOT) supported palm prices.
Dalian soyaoil slipped rose 0.6%, while CBOT soyaoil rose 1.2%. Palm oil on the Dalian however dropped 0.6%.
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