Palm oil higher on bargain buying
JAKARTA: Malaysian palm oil futures rebounded on Thursday after two straight sessions of losses, supported by bargain buying and expectation of slow rise in production in June while weakness in rival vegetable oils limited gains.
The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange was up 1 ringgit, or 0.03%, to 3,840 ringgit ($910.60) a metric ton at closing. 'Bursa Malaysia crude palm oil futures are supported by the slow rise in production and the outlook of improve exports due to competitive pricing,' a Kuala Lumpur-based trader said.
Dalian's most-active soyoil contract was down 0.44% while its palm oil contract lost 0.22%. Soyoil on the Chicago Board of Trade (CBOT) shed 0.58%.
Palm oil tracks the price movements of rival edible oils as it competes for a share of the global vegetable oils market. Malaysian ringgit, the contract currency of trade, eased 0.43% against the US dollar, making the contract more attractive for foreign currency holders. Palm oil may retest the support level of 3,812 ringgit per metric ton, with a good chance of breaking below it and falling towards 3,768 ringgit.
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