JAKARTA: Malaysian palm oil futures climbed on Tuesday, extending a rebound from more than a one-month low, supported by stronger rival vegetable oils and crude oil as market participants awaited Malaysian palm oil output data.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 160 ringgit or 4.15% to 4,015 ringgit ($877.60) per tonne in by midday.
“Techincal rebound is due to oversold… and as external markets mostly higher… market waiting for Nov. 1-20 production figure,” a Kuala Lumpur-based trader said.
The contract a day earlier hit its lowest level since Oct. 17 after posted 10% weekly fall last week.
Palm oil firms as exports rise, ringgit falls
Exports of Malaysian palm oil products in Nov. 1-20 period seen rising between 2.9% and 9.6% according to cargo surveyor Societe Generale de Surveillance, Intertek Testing Services and independent inspection company AmSpec Agri Malaysia reports.
Dalian’s most-active soyoil contract fell 0.51%, while its palm oil contract rose 1.89%. Soyoil prices on the Chicago Board of Trade were up 0.95%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Crude oil inched higher as the dollar eased, which also supported palm oil prices, as higher crude prices make it more competitive to use palm oil for biodiesel.
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