KUALA LUMPUR: Malaysian palm oil futures jumped on Friday, pulling back after a sharp four-day decline, on overnight gains in rival soyoil but the contract is still poised to fall 7% for the week, its largest decline in nearly four months.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange rose 43 ringgit, or 1.22%, to 3,570 ringgit ($884.54) a tonne during early trade.
Palm is set to end a four-week rally after plunging 4.5% in the previous session due to apprehensions of Malaysia's exports falling 40% during Jan. 1 to 15 month-on-month.
Cargo surveyors are scheduled to release export data today.
FUNDAMENTALS
Dalian's most-active soyoil contract fell 0.2%, while its palm oil contract slipped 0.7%. Soyoil prices on the Chicago Board of Trade were down 0.1%.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
CBOT soybeans are on track for their fifth weekly gain as the US government's forecast of tightening global supplies supported prices.
Palm oil may bounce moderately into a range of 3,592-3,631 ringgit per tonne, before falling again, Reuters technical analyst Wang Tao said.