SINGAPORE/JAKARTA: Malaysian palm oil futures pared earlier losses and edged higher on Thursday, ending three straight sessions of losses, on bargain hunting amid expectations for improvement in demand.
The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Exchange closed 1.6% higher at 4,242 ringgit ($1,020.69).
The contract fell to as low as 4,150 ringgit earlier in the session as rival oils slipped. It regained some of the nearly 5% losses it posted in the three previous sessions.
“CPO futures closed higher, rebounding on bargain buying from key technical support of 4,150 ringgit,” said Anilkumar Bagani, research head of Mumbai-based vegetable oils broker Sunvin Group.
“There are expectations that the Malaysian palm oil export will see a rebound in September due to lower palm oil export duty compared to Indonesia,” he added.
Top palm oil producer Indonesia raised its export tax of CPO to $166 per tonne for September, from $93 last month.
Cheaper vegetable oils elsewhere, however, capped the gains.
Palm and soybean oil prices on the Dalian Commodity Exchange meanwhile, declined 1.45% and 0.8%, respectively.
Meanwhile, the Chicago Board of Trade’s soybean oil contract barely changed amid concerns about export delays from the United States.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.