KUALA LUMPUR: Malaysian palm oil futures firmed on Monday as investors looked for bargains after a sharp drop last week, though the recovery could be short-lived as the contract remained under pressure by concerns over tepid demand.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose 20 ringgit, or 0.6%, to 3,342 ringgit ($826.61) a tonne during early trade, after five consecutive days of losses.
The contract slipped nearly 11% last week as cargo surveyors reported a 42% monthly decline in exports during Jan. 1-15.
FUNDAMENTALS
Malaysia is taking legal action at the global trade watchdog against the European Union and member states France and Lithuania for restricting palm oil-based biofuels, the government said on Friday.
Dalian's most-active soyoil contract fell 0.4%, while its palm oil contract slipped 1%. The Chicago Board of Trade was closed for a public holiday.
Palm oil may test a support at 3,300 ringgit per tonne, a break below which could cause a fall to 3,221 ringgit, Reuters technical analyst Wang Tao said.