JAKARTA: Malaysian palm oil futures rebounded on Friday after two days of losses, as the benchmark contract tracked a recovery in related oils, and headed for a modest gain for the week.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange rose 1.85% to 4,016 ringgit ($913.77) per tonne in early trade. It lost 3.33% over the previous two days. For the week so far, it is up 1.70%.
Dalian’s palm oil contract rose 0.75%, regaining some of the 1.42% losses posted a day earlier, while its most active soyoil contract was little changed. Soyoil prices on the Chicago Board of Trade eased 0.16%.
Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market. The share of palm oil in biodiesel and in food in the European Union is expected to fall significantly within the next 10 years, leading to a sharp drop in imports, the European Commission said on Thursday.