KUALA LUMPUR: Malaysian palm oil futures ended a three-day losing streak on Wednesday on a technical rebound although persistent weakness in crude oil capped the gains, with investors nervous that a financial crisis in Russia may curb appetite for commodities.

Brent crude oil traded below $60 a barrel, near 5-1/2-year lows, as major oil producers signalled they would maintain output despite a supply glut and faltering demand in Russia and Europe.

Crude prices, which determine palm oil’s usability in biofuels, have skidded in recent weeks after OPEC resisted cutting output in an oversupplied market.

Key producer Russia also indicated it would keep output steady. Benchmark palm prices fell to a two-week low of 2,103 ringgit in intraday trade, triggering the technical correction, traders said.

The benchmark March contract on the Bursa Malaysia Derivatives Exchange closed up 0.5 per cent at 2,127 ringgit ($611) per tonne, reversing morning losses. Total traded volume stood at 51,932 lots of 25 tonnes, above the usual 35,000 lots.

Technical charts show palm oil is expected to fall to 2,085 ringgit as it has broken support at 2,116 ringgit, according to Reuters market analyst Wang Tao.

Published in Dawn December 18th , 2014