SINGAPORE/JAKARTA: Malaysian palm oil futures snapped two consecutive sessions of losses to end 0.7% higher on Tuesday as the contract tracked strength in rival oils in China and the United States, although weaker exports curbed gains.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange closed 23 ringgit or 0.7% higher at 3,265 ringgit ($806.77) per tonne.
The contract gained as much as 1.5% earlier in the session, but retreated up to 0.7% due to worsening exports.
Dalian Commodity Exchange’s most-active soyaoil contract reversed earlier losses to jump 1%, while palm oil contract rose 0.4%.
Chicago soyabean futures rose slightly, extending gains from the previous session, fuelled by bargain hunting after last week’s steep declines. Its soyaoil prices were last up 0.6%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Capping gains, however, were worsening exports.
Exports of Malaysian palm oil products for January 1 - 25 fell 36.1% compared to December 1 - 25 period, cargo surveyor Intertek Testing Services said on Monday. Cargo surveyor Societe Generale de Surveillance said exports dropped 34.3% over the same period.
“January export numbers are very depressing and there is not much fresh demand coming from destination markets,” Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group, said in a note on Tuesday.