KUALA LUMPUR: Malaysian palm oil futures edged up on Wednesday after two days of losses, helped by gains in rival Chicago soyoil and expectations of tight domestic supply.
The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange gained 8 ringgit, or 0.16%, to 4,863 ringgit ($1,169.83) a tonne during early trade. The contract posted its worst session in nearly a month on Tuesday.
Fundamentals
Analysts expect Malaysia's October palm oil output to remain sluggish as the peak production season ends with lackluster yields, which will keep inventories tight.
US soybean and corn production will be bigger than previously expected, the US Department of Agriculture (USDA said on Tuesday, knocking rival soybean futures to their lowest price of the year.
Palm posts biggest loss in nearly a month as Oct exports slump
Soyoil prices on the Chicago Board of Trade were up 0.8%, after declining 2.7% in the previous session. Dalian's most-active soyoil contract fell 0.6%, while its palm oil contract slipped 0.4%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
A bullish target range of 5,032-5,048 ringgit per tonne has been temporarily aborted for palm oil. It will resume when the contract rises above 4,909 ringgit, Reuters technical analyst Wang Tao said.
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