JAKARTA, Oct 28: Malaysian palm futures recouped losses to finish 5 per cent higher on Tuesday, after hitting a fresh three-year low earlier, supported by a rebound in crude oil price, traders said.

The rally in Asian equity markets and soybean oil prices also helped boost sentiment, they said.

Palm prices could extend their rebound on Wednesday if Wall Street finishes higher on Tuesday, a key factor that will set the tone for trading in Asian markets, said a trader at a Kuala Lumpur-based brokerage firm.

The benchmark January contract on the Bursa Malaysia Derivatives Exchange rose 69 ringgit, or 4.96 per cent, to 1,459 ringgit ($377) per ton, coming off a low of 1,331 ringgit, the weakest since mid-August 2005.Other traded months rose between 4 ringgit and 61 ringgit.

The overall volume stood at 17,189 lots of 25 tons each.

Oil rose toward $64 on Tuesday, tracking a recovery in European and Asian stock markets as dealers returned to buy beaten-down shares.

The most active December soybean oil contract rose 1.90 cents, or 5.99pc, to 33.62 cents per lb in Asian trading.

In Jakarta, the state marketing centre said it sold 1,000 tons of palm oil at 4,100 rupiah ($0.38)) per kg, down from 4,253 rupiah per kg at its previous auction last Thursday.

Producers in Medan -- home to Belawan port, Indonesia’s key port for palm oil exports -- sold palm oil at 3,950 rupiah per kg, down from 4,150 rupiah per kg last Thursday.

There was no auction on Monday and last Friday.

We missed the rally in Malaysian palm futures because the auctions here were done before palm futures bounced back in late trade a trader in Medan said.

In Jakarta, refiners sold refined, bleached deodorised (RBD) palm olein, which is used in cooking oil, at 4,850 rupiah per kg, up from 4,750 rupiah per kg on Friday.—Reuters