JAKARTA: Malaysian palm oil futures rebounded on Wednesday, as better export figures and expectation of easing production growth in March supported prices.
The benchmark palm oil contract for June delivery on the Bursa Malaysia Derivatives Exchange rose 72 ringgit or 1.71% to 4,273 ringgit ($902) per metric ton by the end of afternoon session.
“Today crude palm oil futures were up on rumour of better export figures and the production increase for the first 20 days of March is lower than the increase in first 15 days,” a Kuala Lumpur-based trader said.
Exports of Malaysian palm oil products for March 1-20 are seen rising between 7.4% to 16.3% compared to the same period last month, cargo surveyors Intertek Testing Services and Amspec Agri said on Wednesday, accelerating from the 3.3% to 8.4% monthly exports growth estimated for the first half of March.
Palm oil tracks rival oils higher; output expectations, exports cap gains
Dalian’s palm oil contract rose 2.45%, while its soyoil contract was up 0.71%. Soyoil prices on the Chicago Board of Trade were up 0.55%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Palm oil may fall into a range of 4,158-4,170 ringgit per metric ton, as the uptrend from 3,916 ringgit or 3,811 ringgit has reversed, Reuters’ technical analyst Wang Tao said.
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