JAKARTA: Malaysian palm oil futures rebounded in early trade on Monday, as supply constraints due to the rainy season and strength in rival oils supported the market.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange rose 0.93% to 4,970 ringgit ($1,198.17) per tonne, recovering from its worst week in two months.
FUNDAMENTALS
Prices are seen rising as the rainy season and coronavirus-linked labour shortage are slowing output in Malaysia, a trader said.
Dalian's palm oil contract rose 0.46%, while the most-active soyoil contract gained 0.12%. On the Chicago Board of Trade, soy oil prices were up 0.66%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
MARKET NEWS
Asian shares started steady ahead of a week packed with major quarterly earnings announcements, while the dollar hovered near October lows after three weeks of risk-friendly sentiment hurt safe-haven currencies.
Oil prices rose, extending pre-weekend gains, with US crude hitting a seven-year high as global supply remained tight amid strong demand worldwide as economies recover from coronavirus pandemic-induced slumps.
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