JAKARTA: Malaysian palm oil futures rebounded on Monday as rainy season disrupted production of the versatile vegetable oil, with strength in rival oils supporting the market.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose 1% to 4,973 ringgit ($1,198.89) per tonne, recovering after two consecutive sessions of losses when it fell 3%. "Our production is still slow, thus the strong pricing," a Kuala Lumpur-based trader said, adding that due to the wet season, the country's palm producing regions were experiencing "constant rain".
Meanwhile, Dalian's palm oil contract rose 0.67%, while the most-active soyoil contract gained 0.40%. On the Chicago Board of Trade, soy oil prices were up 1%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Separately, Reuters technical analyst Wang Tao said palm oil may end its bounce below a resistance at 5,048 ringgit per tonne and resume the drop from the Oct. 21 high of 5,220 ringgit.