JAKARTA: Malaysian palm oil futures recovered on Wednesday after four straight sessions of losses, with stronger Chicago soyoil and Dalian palm oil prices lending support to the market.
The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange gained 32 ringgit, or 0.8%, to 4,022 ringgit ($972.91) a metric ton at closing. The contract had hit its lowest since July 2 in the previous session.
“Bursa Malaysia CPO futures prices experienced a technical rebound after yesterday’s steep drop,” said a Kuala Lumpur-based trader, adding that a recovery in Dalian palm oil and strengthening Chicago soyoil also lent support.
Dalian’s most-active soyoil contract was down 0.12%, while its palm oil contract gained 0.21%. Soyoil prices on the Chicago Board of Trade were up 0.34%.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market. Exports of Malaysian palm oil products for the November 1-22 period were seen down between 16.4% and 18.8% from a month earlier, according to independent inspection company AmSpec Agri and cargo surveyor Intertek Testing Services.
Oil prices recovered slightly on Wednesday, after dipping to one-month lows in the previous session amid signs that Ukraine is nearing a peace deal with Russia that would likely lead to the end of international sanctions on Russian supply.
Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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