Malaysian palm oil futures closed up on Wednesday tracking higher soyabean oil prices, after slumping to a near nine-month low in the previous session, but gains were capped by a retreat in crude oil prices.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange gained 12 ringgit, or 0.58%, to 2,076 ringgit ($475.60) per tonne.
Palm oil had climbed 2.4% in early trade on bargain buying, but slipped following a drop in crude oil prices, traders said.
The Malaysian Palm Oil Association estimated palm oil output for April 1-20 to jump 25.9%, according to traders.
This may help to reduce output loss in the second largest producer as it deals with its six-week partial lockdown restrictions, Bagani said.
Dalian's most-active soyaoil contract gained 0.56%, while its palm oil contract fell 2%. Soyaoil prices on the Chicago Board of Trade were up 0.47%.
Oil slumped to less than $16 a barrel to its lowest since 1999, with the market awash with excess supply as the economic fallout from the coronavirus pandemic hammers demand for fuels.
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